Canadian businesses have increased confidence about their prospects for the next six months with an index score of 63.65 compared to 59.35 in the summer of 2011, according to Sage, provider of business management software. Indexes are based on a scale where zero to 50 is negative and 50 to 100 is positive.
When asked if they felt the Canadian economy had improved or declined over the past six months, the sentiment was slightly positive with an index score of 54.62, found the survey of 2,278 business owners.
Almost three-quarters (70 per cent) of businesses reported revenue either stayed the same or increased over the past six months. Only 19 per cent reported revenue decreasing over that same period.
When asked what the biggest concerns for their business are over the next six months, 51 per cent indicated the rise in inflation and increasing cost of energy, 33 per cent indicated instability or uncertainty in the local economic market and 25 per cent cited instability or uncertainty in global economic markets, reduced cash flow in the supply chain and increasing government regulation as concerns.
Canadian businesses are more confident than their counterparts in the United States, United Kingdom and Europe, found the survey, part of a global survey conducted in Canada, the U.S., France, Germany, the U.K., Spain, Austria, South Africa and Malaysia/Singapore. However, Canadian businesses remain pessimistic about the global economy with an index score of 45.53. Businesses in the U.S., U.K., Germany and other Eurozone countries expressed even greater pessimism for the global economy.
"The findings of the Sage Business Index continue to reflect the positive sentiment that many Canadian businesses have about the future of their companies and about the continued growth of the Canadian economy. With the price of energy continuing to affect consumers and business owners alike, we must be mindful of the impact this will have on the expected economic growth in Canada and around the world," said Nancy Harris, vice-president and general manager of the Sage Simply Accounting business.
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