By Doug Caverly – Thu, 03/04/2010 –
Measure of confidence hits 2002-2007 historical average
The Canadian Federation of Independent Business’s Business Barometer Index has gone up for the second month in a row, and even if it’s supposed to take three occurrences to start an official trend, this is a big deal. The index has achieved a feat and reached a level not seen in a while.
The last time the index rose two months in a row was the summer of 2008. What’s more, according to Ted Mallett, the CFIB’s vice president of research and chief economist, “The index level is back to its previous cyclical peak reached last September and also to its 2002-2007 historical average.”
Finally, business owners’ confidence improved in 10 out of 14 categories, and “[t]he February results correspond to roughly 3 per cent real GDP growth.”
Obviously, these are all moves in the right direction. That last improvement, in particular, is impressive given the short period of time during which it took place.
Hopefully things will continue to pick up as the weather improves and people spend more time out of the house. The Business Barometer isn’t too far away from getting back up to its all-time high and then setting some new records.