MNI DATA IMPACT: Canada Smallbiz Sentiment Highest in a Decade

Canadian small business confidence reached the highest in a decade as second wave Covid-19 lockdowns lifted, an industry group reported Thursday, providing more evidence the economic rebound is stronger than policy makers expected.

The Canadian Federation of Independent Business Barometer climbed to 68.2 in March from 62.5 in February. That compared to a recent low of 53.3 in October and a record low 30.8 in March of last year. The CFIB says in normal times, a reading of 65 is consistent with an economy at potential.

Prices are seen rising 2.5% over the next 12 months, the fastest pace since July 2018. While that measure stuck close to 2% through most of the pandemic, it is only the third time in data back to 2009 inflation has been seen running at this pace or faster.

"While expectations are marked by improved optimism, all other business indicators do not show any signs of improving yet. Staffing plans and general business health are stagnant; while investment plans are only modestly better," CFIB senior analyst Andreea Bourgeois wrote in the report.

The survey with 985 responses was taken March 2-15.