Small business confidence fell for the fourth month in a row, according to the Canadian Federation of Independent Business (CFIB).
Its latest Business Barometer shows the three-month index fell by nearly eight point in July while the 12-month index fell by nearly seven points.
“Businesses are feeling the pressure of inflation right now, with both price and wage increase plans at all-time highs and growing concern over labour shortages and input costs, particularly fuel and energy,” mentioned Simon Gaudreault, chief economist and vice-president of research at CFIB in a release.
“Worse still, they don’t feel heard – only 16% believe the federal government understands the cost pressures they face, according to a recent CFIB survey. It’s no wonder they are feeling anxious about the future,” continued Gaudreault.
Only 32 per cent of businesses mentioned they are in good shape, while 20 per cent say they are in bad shape.
As well, full-time hiring plans continue to thin, as 20 per cent of firms looking to hire over the next three months, and 17 per cent look to lay off staff.
CFIB also mentioned average price and wage increase plans are still coasting at historically high levels.
The major limitation on growth was labour shortages, and fuel and energy costs continue to be the top costs for small businesses.
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