Small businesses across Canada are less optimistic about the outlook for the economy, with the weakest sentiments coming from Ontario, according to Canadian Federation of Independent Business (CFIB).

The Business Barometer index for Ontario fell to 87.3 in the recent six weeks covering Oct. 6 to Nov. 16 from 107 in September of last year, the CFIB announced Wednesday.

On a national basis the optimism factor was 90.3 during this same period, compared to 101.8 recorded in early September of this year.

“The lower readings in Ontario have been showing up for more than a year,” said Ted Mallett, CFIB’s chief economist, in a release. He added that the high degree of uncertainty in the economy makes it impossible to suggest a low has been reached either in this province or any other region.

“The decline in optimism has been widespread,” said Mallett, “as no province or industry sector has been untouched. Nevertheless, the severity of economic injury has not yet matched that experienced in past downturns of the mid-1990s.”

Other provinces that also showed low levels of optimism during the six-week surveying are British Columbia and Alberta, where index levels fell considerably faster to 89.3 and 91.8 respectively from their levels above 110 in September of last year. Mallett said businesses in these two provinces have been hit especially hard by the weakness in the U.S. economy and commodity price collapses.

On a less gloomy note, Mallett said small businesses in Saskatchewan and Newfoundland & Labrador remain the most optimistic in the country with index levels at 102.6 and 99.3 respectively. But he added that even they are considerably below previous readings of 113.9 for Saskatchewan and 112.9 for Newfoundland that were taken in September of this year.

Across Canada, business owners in the manufacturing sector are the least optimistic, registering an index level of 85.4, followed closely by those in construction and retail industries (88.0 and 87.9 respectively. The most optimistic businesses remain in the healthcare and education professions (99.3) and the business services sectors (94.8).

Mallett said because of the high degree of economic uncertainty that exists on a global basis, it is essential to continue monitoring the situation, something CFIB intends to do.

These findings are based on 5,388 responses of small business owners across Canada surveyed between Oct. 6 and Nov. 16.

IE