Daily Economic Comment - Alberta Businesses Look to the Bright Side
Posted By: Todd Hirsch, Senior Economist ATB Financial Jan 6, 2012
As 2011 drew to a close, the Canadian economy appeared vulnerable to a myriad of global concerns, But according to a survey of members by the Canadian Federation of Independent Business, small and medium-sized enterprises are becoming somewhat more optimistic- a trend that is particularly evident in Alberta.
In December, the index of business optimism in this province stood at 73.6 - the highest in the country, and just ahead of second-place Saskatchewan (72.2). Nationally, the index has improved over the past few months, and stands at 65.0.
The CFIB's Business Outlook Survey in conducted monthly form a sample of 900 independent business participants across the country. The survey produces an index value between 0 and 100. Values above 50 indicate that business owners expecting their company's performance to be stronger in the next year outnumber those expecting weaker performance.
The nation-leading optimizing in Alberta is, perhaps, not a surprise. Growth in the province has outpaced most of the rest of North America, despite the growing worries in Europe and elsewhere. Strong expanding labor market have contributed to a healthy economy. As a result, Alberta's independent business owners are in a relatively buoyant mood going into 2012.