The three-month index fell eight points to 46.7, while the 12-month index fell nearly seven points to 52.7 in July.
“Businesses are really 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,” said Simon Gaudreault, vice-president of research at CFIB. “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.”The results also show 20% of small businesses have plans to hire over the next three months, while 17% say they may be laying off staff.Article contentFifty-two percent says there are shortages of skilled workers and 39% for semi- or unskilled workers.
However, 44% of businesses in Ontario and 45% of businesses Newfoundland and Labrador, and 37% of those in agriculture, and 38% of those in retail were the least optimistic.“These indicators should serve as a serious warning to governments that businesses are struggling. They should be factoring this into their economic and policy decisions in the months ahead, as businesses can’t handle any more pressure,” said Andreea Bourgeois, director of economics at CFIB.
The findings were collected from 734 CFIB members, and are considered accurate plus or minus 3.6%, 19 times in 20.
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