Supply difficulties, restrictions and labor shortages weigh on SME confidence in January

category in: Business
Threads : Economy, Small Business Services

MONTRAL, Jan. 27, 2022 /CNW/ — Reflecting on winter temperatures, optimism among small business owners slowed significantly in January, according to Business BarometerMD From the Canadian Federation of Independent Business (CFIB). The confidence index fell to 54.3 over twelve months and 36.9 over three months, matching preliminary results published in mid-January. In addition to concerns about re-restrictions and ongoing labor shortages, many small and medium-sized businesses are reporting supply issues.

• The outlook for managers of small and medium enterprises has not improved since the beginning of the month. The retail, accommodation/food and personal services sectors are particularly uncertain about the future,? Announce Simon GoudreauVice President of National Research at CFIB.

The outlook for the next three months is the least optimistic in the retail sector. The index stands there at 30.4, down 9 points since December. Short-term confidence in accommodation/food services (32.0), personal services (39.3) and health and education services (41.8) are also weak.

Plans to hire full-time employees remain passive, with 23% of SMEs planning to lay off workers over the next three months, while only 16% are in hiring mode. Other indicators of business health remain weak as they were at the beginning of the month.

Supply Chain Under Pressure
The proportion of SME managers who believe that input shortages (29%) and distribution restrictions (23%) contribute significantly to slowing their growth is still high. Moreover, the rate of unsold inventory fell to 58% this month, compared to 68% in December.

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SMEs have been facing supply problems since mid-2021, ranging from product shortages to rising costs for raw materials and other inputs. But this problem is getting worse at the moment and adding to the uncertainty that many small and medium businesses face? Andrea Bourgeoisdirector of economics at CFIB.

Business BarometerMD From January 2021
The January results are based on 1,110 answers collected from a stratified random sample of CFIB members to a web-based controlled access survey. The data reflects responses received from January 6-20. The results are accurate +/- 2.9 percentage points, 19 times out of 20.

About CFIB
CFIB (Canadian Federation of Independent Business) is the largest federation of small and medium businesses in the country, with 95,000 members in all sectors of activity and all regions. It aims to increase the chances of success of small and medium businesses by defending their interests with governments, providing them with personal resources and offering them exclusive savings. visitfcei.caTo find out more.

Source: Canadian Federation of Independent Business

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