Optimism among Canada’s small- and medium-sized business owners experienced its third consecutive monthly decline in August, largely due to uncertain market conditions, the Canadian Federation of Independent Business reported on Wednesday.

The federation’s Business Barometer index fell to 64.9 last month, down from 65.7 in July, and well below 2010’s March peak of 69.9.

“The current Barometer reading suggests the economy is only growing at a modest 2%,” explained CFIB vice-president and chief economist, Ted Mallett.

Business optimism fell in 7 of 10 provinces, but it was mainly weaker sentiment among firms in Western Canada that drove the national index lower. A nearly six point decline in B.C., coupled with one-to-three point reductions in the Barometer indexes in Alberta, Manitoba and Saskatchewan drove the region to below the national average.

Shifts in optimism were mixed in Atlantic Canada, rising in Nova Scotia, but falling elsewhere in the region. Against the trend, business owners in Ontario and especially Quebec recorded improving sentiment in August.

Optimism has declined in 8 of 13 major industry groups, including bellwether sectors construction, manufacturing, wholesaling and financial services.

IE