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“Small businesses are overall feeling cautiously positive heading into the summer. Now that all the governments have tabled their budgets, business owners at least have some idea as to what to expect in the coming months. Their increased optimism could also be partly explained by much-anticipated interest rate cuts in June and the cooling labour market,” said Andreea Bourgeois, CFIB’s director of economics.
“While some indicators of cost pressure and limitations on growth are still way above their historical averages, it’s still reassuring to see overall improvements in the small business sentiment.”
Average price and wage plan increases stabilized in May, both sitting at 2.8 percent. The average price increase indicator dropped the 0.5 points gained in April, almost matching the March level (2.7 percent).
This month’s Business Barometer suggests that labour market pressures are easing, with 45 percent of businesses reporting a shortage of skilled labour, down from 47 percent last month. Full-time and part-time hiring plans remain timid in May but are stronger than earlier in the year.
“While historically more businesses plan to hire ahead of the busy summer season, this year those hiring plans are more cautious but at least firms are not looking to lay off either,” Bourgeois added.
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