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The Canadian Federation of Independent Business (CFIB) has reported a significant decline in small business confidence, marking its lowest level ever in March as tensions from the ongoing trade war with the United States escalated.
According to the CFIB, the long-term index of its business barometer dropped by 24.8 points, settling at a meager 25.0 for the month of March. This index, which operates on a scale of zero to 100, indicates that a score below 50 signifies that the number of business owners anticipating a downturn in performance over the next three to twelve months surpasses those expecting improvement.
Simon Gaudreault, the leading economist and vice-president of research at CFIB, expressed concerns about the uncertainty surrounding the future of the tariff conflict. He noted that many business owners feel that the most challenging times may still lie ahead.
In addition to waning confidence, the CFIB’s findings reveal a shift in hiring intentions among small businesses. Currently, 19 percent of small firms are planning layoffs in the near future, a rise from 13 percent in February, while only 11 percent indicate a desire to hire new staff.
This report is derived from a survey conducted between March 5 and 7, involving responses from a representative sample of 1,065 CFIB members.
Source
globalnews.ca