Small Business Confidence Across Canada Slumps to 5-Month Low Amid Virus Resurgence

As a second, more severe coronavirus wave threatens the Canadian economy, small businesses across the country are once again bracing for the worst.

As governments look to bring back previously lifted restrictions and closures to contain the virus, Canada’s economy may be heading for a dark fourth quarter. The Canadian Federation of Independent Business (CFIB) index, which monitors small business sentiment across Canada, declined by nearly 6 points to 53.3 in October. This is the lowest level recorded in over five months, and the largest drop since Canada’s economy went into lockdown back in March.

The grim reading for October corresponds to the sudden spike in coronavirus cases, which have begun to alarm health officials across the country. Some regions of Canada have reintroduced restrictions on hospitality and restaurant sectors, as well as businesses that pose a higher risk of potential infection. As a result, optimism among small and medium-sized businesses across decreased in 7 out of 10 provinces, with the largest declines occurring in New Brunswick, Ontario, and Alberta. Likewise, dwindling sentiment was also noted across several key industries, including transportation and health and eduction services.

The CFIB report also noted that the month of October saw many businesses operate below 71% capacity, which has remained unchanged since August. Meanwhile, 28% of businesses across Canada said they plan to reduce their full-time staff within the next three months, while only 12% said they would boost their full-time workforce. Following what was a positive rebound over the summer supported by the lifting of restrictions, the fourth quarter will likely not continue to heed similar results.


Information for this briefing was found via the CFIB. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

When 4% of Global Copper Disappears Overnight | David Gower – Emerita Resources

Mining M&A: Gold X2 Acquires Kesselrun Resources

They Said Oil Was Dead. They Were Wrong. | Michael Judson – Record Resources

Recommended

Military Seizes Power in Madagascar After President Flees

Altamira Gold Hits 395.5 Metres Of 0.4 g/t Gold At Maria Bonita

Related News

Canadian Retail Trade Declines by Most Since 2009 Financial Crisis

Retail sales across Canada dropped by the most since April’s historic lows, falling by 3.4%...

Sunday, February 21, 2021, 11:35:00 AM

CP Rail to Purchase Kansas City Southern for US$25 Billion

Canadian Pacific Railway Ltd has revealed it will be purchasing Kansas City Southern for US$25...

Monday, March 22, 2021, 02:38:00 PM

Top 20% of Canadian Earners Pay Over Half of All Taxes, Study Finds

A recent report from the Fraser Institute reveals that high-income families in Canada contribute a...

Tuesday, July 9, 2024, 01:36:00 PM

Canadian Vehicle Sales Drop 17.4% in January Amid Supply Shortages, Lockdowns

Auto sales in Canada declined for the month of January, after further Covid-19 lockdowns and...

Thursday, February 4, 2021, 11:53:00 AM

Canada Sees GDP Fall 11.5% In Second Quarter

It’s been reported by Statistics Canada this morning that the second quarter saw real GDP...

Friday, August 28, 2020, 11:18:30 AM