Canadian small business sentiment rises in April but remains at low level

Canada’s small business sentiment rose slightly in April. The CFIB Business Barometer rose 16 points to 46.4 in April. While this is a considerable rebound, the index however stands at a level last seen during the 2008-2009 recession, noted TD Economics in a research report.

Region wise, all provinces in the ease saw lower readings, led by a fall of 8.1 to 39.2 in New Brunswick. On the contrary, Quebec and Ontario saw strong gains of 7.7 and 11.6, respectively. However, at 32.1, Quebec's reading continues to be quite low. Similarly, in the west the levels rose but continue to be low.

Industry wise, the picture is one of improvement but remain at still-weak levels. The only falls were seen in information, arts and recreation and transportation. Insufficient domestic demand continued to be the major reported limitation of sales growth.

“Still, as big as the improvement off the low may be, today's reading tells us that the majority of Canadian small businesses remain in a world of pain, and are likely bear the brunt of the unprecedented economic contraction expected this quarter”, said TD Economics.