Canadian Confidence Dips Again

Bears, not economies, are supposed to hibernate during the winter, but it’s starting to look like things in Canada are getting pretty slow.  The Canadian Federation of Independent Business’s Business Barometer Index documented another loss in confidence in September.

This extends a streak of losses that actually began well before the weather started to turn colder.  Ted Mallett, the CFIB’s vice president and chief economist, noted, "The reading is the fourth monthly decline in a row, and the fifth since March 2010′s post-recession high of 69.9."

Mallett also wrote, "This latest result suggests the economy is truly kicking into low gear."

The bright side is that the bottom hasn’t fallen out.  By the CFIB’s standards, index levels between 65 and 75 indicate economic growth, so the September reading of 63.6 doesn’t appear indicative of anything catastrophic.

Also, small businesses outside of Ontario might be doing better than the September number suggests, as the CFIB explained, "[I]t was the six-point drop in Ontario’s index that primarily carried the national score lower."

Hopefully Halloween and Thanksgiving shoppers will counteract this slowdown before the next month’s stats are released.