Flat confidence good for investors?
The CFIB Business Barometer, which uses a scale of 0 to 100 to measure how companies feel about their expected performance, recorded its fourth straight month of decline. In boom times an index level reads between 65 and 70, but as the optimism of small business owners continues to fall, the index is currently at its lowest level in three years at just 58.6.
Jacques Marcil, Senior Economist at TD Economics confirms that Canada`s prospects ` at least for the short term ` are limited.
`In addition to the continuing difficulties in Europe and the sluggish recovery in the U.S., elevated household debt levels in Canada will keep personal spending growth in check in the near to medium term`, he said.
Compared to the GDP, the index indicates that Canada`s economy could be grinding to a halt. But in addition to the soaring rate of household debt and current unemployment rate, small business owners now fear Flaherty`s new mortgage rules will cripple spending even further.
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