{"id":25695,"date":"2024-05-04T14:31:03","date_gmt":"2024-05-04T21:31:03","guid":{"rendered":"https:\/\/essential.construction\/news\/ontarios-small-business-confidence-plummets-in-april-cfib\/"},"modified":"2024-05-04T14:31:04","modified_gmt":"2024-05-04T21:31:04","slug":"ontarios-small-business-confidence-plummets-in-april-cfib","status":"publish","type":"post","link":"https:\/\/essential.construction\/news\/ontarios-small-business-confidence-plummets-in-april-cfib\/","title":{"rendered":"Ontario\u2019s small business confidence plummets in April: CFIB"},"content":{"rendered":"

\"-\"<\/a>
\n<\/p>\n

\n

Ontario\u2019s long-term business confidence level for the next 12 months dropped a disturbing 6.7 points since March to 49.2, according to the latest Canadian Federation of Independent Business<\/a> (CFIB) Business Barometer\u00ae index. This score places Ontario in a tie with Quebec for the third lowest long-term business confidence level in the country after Saskatchewan and New Brunswick.<\/span><\/p>\n

Ontario\u2019s short-term business confidence level for the next three months also decreased, dropping 1.6 points since March to 48.4, the second lowest score in the country after Saskatchewan.<\/p>\n

\u201cRising costs on everything are making it almost impossible for small businesses to achieve any meaningful headway on recovery,\u201d said Ryan Mallough, CFIB\u2019s vice president of legislative affairs for Ontario. \u201cSadly, far too many CFIB members who\u2019ve been around for years are feeling that running a business is becoming all pain and no gain.\u201d<\/p>\n

Tracked against GDP, CFIB\u2019s Business Barometer\u00ae closely reflects the state of the economy. Measured on a scale between 0 and 100, an index level above 50 means that owners expecting their business performance to be stronger over the next year outnumber those expecting weaker performance. According to past (pre-pandemic) results, index levels normally range between 65 and 75 when the economy is growing.<\/p>\n

According to the April Business Barometer\u00ae, for the eighth consecutive month, insufficient demand rated as the top limitation in Ontario on sales or production growth. Over half (57%) of Ontario\u2019s small- and medium-sized businesses reported insufficient demand (domestic or foreign), the highest share since the pandemic.<\/p>\n

\u201cWith demand for both goods and services consistently low, it\u2019s still a challenge for many small businesses to get back to their normal revenue level for this time of year,\u201d said Julie Kwiecinski, CFIB\u2019s director of provincial affairs for Ontario. \u201cThe minute small businesses get an inch ahead, they\u2019re hit with even more increased costs, forcing some to pass down at least a portion of these extra costs to customers.\u201d<\/p>\n

April Business Barometer\u00ae also reveals that insurance costs and fuel costs tied as the top reported cost constraint for Ontario small business owners, followed by wage costs and tax\/regulatory costs. High insurance costs are causing difficulties for 70% of Ontario businesses, the highest point in decades and way above their historical average of 51%.<\/p>\n

\u201cSmall businesses need cost relief now,\u201d said Kwiecinski. \u201cWe continue to urge the Ontario government to focus on small business affordability measures, including lowering the Small Business Tax Rate (SBTR) and increasing the SBTR\u2019s threshold that has been stuck at $500,000 since 2007.\u201d<\/p>\n<\/p><\/div>\n