Canada’s small business confidence index rises in April, medium-term outlook appears positive

Canada’s small business sentiment rises to the highest point since the end of 2014. The CFIB’s Business Barometer index rose to 64.4 in April, up 1.5 points. Throughout the nation, the most positive provinces in April were British Columbia, Ontario, Quebec and Nova Scotia, where the index rose to 67.1, 68.7, 65.7 and 66.3 respectively. Meanwhile, sentiment in oil-producing provinces of Saskatchewan and Newfoundland and Labrador continues to remain behind. However, Alberta appears to be recovering, with the index at 57.9.

Sector wise, insurance & realty, finance, hospitality and wholesale were the most optimistic groups in April. Meanwhile, sentiment levels in construction, manufacturing and agriculture came back close to February levels. Other indicators such as accounts receivables and current business status were upbeat. However, plans for employment dropped a bit in April and continue to be relatively low compared to what is usually seen at this time of the year, noted TD Economics in a research report.

The medium-term outlook for business sentiment and the Canadian economy continues to be positive, owing to a confluence of factors such as accommodative monetary policy, resilient consumer and slowly rising oil prices, stated TD Economics. However, it is uncertain if the recent upbeat momentum in business confidence will continue in the near-term.

At 15:00 GMT the FxWirePro's Hourly Strength Index of Canadian Dollar was bearish at -73.5914, while the FxWirePro's Hourly Strength Index of US Dollar was neutral at 40.3712. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex