Skip to main content

Small business confidence in Alberta jumped in May by the largest amount in nearly three years, according to a survey of business owners.

The business barometer index hit 51.8, up 7.7 points from April, based on a survey of Canadian Federation of Independent Business members released Thursday. A reading above 50 indicates that, on balance, owners expect business to improve over the coming year. Alberta’s index was last above 50 in November, which is when local crude prices tumbled to all-time lows and forced the previous government to respond with various measures.

Alberta notched the largest index gain among the provinces in May, though it remains well below the national reading of 59.7, which increased three points from April. In a release, CFIB noted that Alberta is a “long way” removed from a 65-to-75-point range that indicates “a healthy and growing economy.”

“Alberta's rebound from its January low is encouraging, and is consistent with a modest uptick in other indicators and improved pricing in the province's oil benchmarks,” said TD economist Omar Abdelrahman in a client note. “That said, structural issues in the province's energy sector and uncertainty around global oil prices mean that confidence is unlikely to see a return to its pre-2015 levels anytime soon, with the same holding true for Saskatchewan.”

The survey was the first conducted after Alberta’s provincial election, which was handily won by a United Conservative Party that has made pro-business policies a hallmark of its early days in office. Premier Jason Kenney has dubbed this a “summer of repeal,” vowing to roll back various policies from the previous New Democrat government. For one, the UCP government tabled legislation Tuesday that would cut the corporate tax rate – which had been raised to 12 per cent from 10 per cent by the NDP – to an eventual 8 per cent.

CFIB does not ask its members of their political party affiliations or voting intentions.

Follow related authors and topics

Authors and topics you follow will be added to your personal news feed in Following.

Interact with The Globe