MNI: Canada SmallBiz Confidence Tumbles Back Toward Record Low

Canadian small business confidence plunged in the opening days of 2022 according to a flash survey Tuesday from a major lobbying group, rivaling record lows set during the first Covid lockdowns.

The Canadian Federation of Independent Business Barometer looking at conditions over the next 12 months fell to 52.4 from December's 62.6, the lowest since early 2020. The index was as high as 70.1 last June, up from the record low of 30.8 set in early March 2020. Results are based on 503 responses taken Jan 6-7, and the report comes out just after the BOC's quarterly survey of about 100 firms showed strong confidence and elevated inflation at the end of last year.

“This really underlines how precarious the situation is for a lot of small businesses,” said CFIB researcher Simon Gaudreault. Last week he told MNI the group was poised to shift back to biweekly reports given record Covid caseloads linked to the omicron variant, adding that supply bottlenecks would likely also extend inflation pressures.