A CFIB Business Barometer survey found B.C. small business confidence fell in October amid cost pressures and subdued demand.
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B.C. small business confidence weakened in October, according to the Canadian Federation of Independent Business (CFIB) Business Barometer.
The province’s 12-month outlook index fell to 49.0 in October from 54.2 in September, slipping below the neutral threshold of 50. The three-month index dropped to 43.3 from 47.2.
CFIB reported that insufficient demand was the leading constraint on business growth, cited by 49 per cent of respondents. Skilled labour shortages were reported by 39 per cent of businesses, while 38 per cent pointed to limited working capital or cash flow.
Operating costs remained a significant challenge, with tax and regulatory costs cited by 67 per cent of businesses and fuel and insurance costs affecting 57 per cent and 55 per cent of respondents, respectively. The share citing wage costs declined slightly to 63 per cent from September.
The survey also showed weaker net hiring intentions: 15 per cent of businesses planned to increase full-time staffing over the next three months, unchanged from September, while the share planning reductions rose to 19 per cent from 16 per cent.
In the retail sector, CFIB’s supporting figures referenced August results. On a seasonally adjusted basis, B.C. retail sales rose 2.1 per cent month-over-month to $10 billion, after July’s 1.8 per cent decline and with the national increase reported at 1.2 per cent.
On an unadjusted basis, retail sales increased 2.7 per cent year-over-year, with growth driven by higher receipts at gasoline stations and fuel vendors. Adjusted for inflation, retail sales volumes declined an estimated 0.3 per cent year-over-year.
Regionally, seasonally adjusted retail sales in the Vancouver metropolitan area rose 2.1 per cent in August, while unadjusted sales increased 1.4 per cent year-over-year. Unadjusted B.C. subsector data showed gasoline stations and fuel vendors up 15.3 per cent year-over-year to $1.1 billion, alongside increases at health and personal care retailers (up 8 per cent to $891.5 million) and general merchandise retailers (up 5.5 per cent to $1.3 billion).
Other categories showed declines, including clothing, accessories, footwear, jewellery, luggage and leather goods retailers, which recorded their first year-over-year drop of the year, down 1.1 per cent. Food and beverage retailers saw sales fall 2.8 per cent to $2.1 billion, while weakness persisted at motor vehicle and parts dealers (down 4.9 per cent) and building material and garden equipment and supplies dealers (down 4.7 per cent).
The data also showed year-to-date retail sales up 1.8 per cent, led by gains at gasoline stations and fuel vendors (up 13.7 per cent), health and personal care retailers (up 8 per cent) and general merchandise retailers (up 6.9 per cent).
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