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Small employers in Alberta remain pessimistic about the provincial economy, according to a monthly snapshot of business confidence that barely budged in August. The index, published by the Canadian Federation of Independent Business, shows small business confidence fell one point to 45.6 this month, on a scale of 0 to 100. It’s the second-lowest rating in Canada next to Newfoundland and Labrador, and well below the threshold considered to indicate a healthy economy: 65 to 75. Small business confidence in Alberta has been trending upward since hitting a record low of 26.5 in March, though it remains at depressed levels. Companies polled in the survey said slumping consumer demand was by far their biggest limit to sales and production growth, while almost three-quarters said tax and regulatory expenses were their biggest cost constraints, next to wages and insurance costs. One in five business owners said they viewed the general state of business health as good, though 38 per cent said it was bad, up four points from July. “When you have such a significant number of small businesses describing the general state of business as bad, there is a lot more that the government can do and should do to make sure that they’re not making a bad situation worse,” said Amber Ruddy, the small business group’s Alberta director. The August survey was taken before the NDP government revealed this week the province’s deficit is on track to hit a staggering $10.9 billion , just as the economy is forecast to shrink even further. Ruddy said the government should “hit the pause button” on its carbon tax and minimum wage hike to help small businesses cope with the recession.
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