A new study indicates that many businessowners in Canada couldn't be happier about how their finances are faring this year.
According to the Canadian Imperial Bank of Commerce, the financial well-being of Corporate Canada is on the rise and any trying economic circumstances it may experience over the balance of the year should not be too hard to handle.
Avery Shenfeld, chief economist at CIBC, said that Canada's businessowners are in the best shape they have been in since prior to the recession.
"It's encouraging that a health check on Canada's corporate sector shows businesses across the country passing with flying colours," said Shenfeld.
He added that CIBC's economic indicator, which has followed how strong businessowners' bottomlines have been since 1990, has never been higher and is well above its long-term average.
"Given all the shockwaves and negative headlines on the economic picture in the past year, the fact that confidence held up above-trend is actually quite remarkable," said Shenfeld. "With concerns surrounding Europe abating, and the U.S. showing improved growth, it's likely that fresh measures of business sentiment will show a rebound."
Also attesting to Corporate Canada's' overall positivity is the Canadian Federation of Business' Business Barometer. The index climbed to 67.7 in March. It's now up six points since last summer and has risen seven times in a row.
Last month, the CFIB said that the continued increases were a sign of business stability.
Ted Mallett, vice president and chief economist for CFIB, noted that despite high government debt levels, the small business community has increased buying activity. Those growing businesses may need to revamp their business insurance to protect new equipment or facilities.
"Thirty-five per cent of our respondents expect to invest in office or communications technology in the next three or four months which is slightly higher than the average of the past two years," said Mallett. "Also above trend is the confidence for planned investment in land and buildings."
The report also showed optimism was even higher from province to province. For instance, at 74.6, Alberta businessowner optimism reigned supreme last month, followed by Saskatchewan at 72. Manitoba, Ontario and New Brunswick rounded out the top five at 69.8, 68.2 and 66.0.
CFIB determines what sentiment is on a scale of 0 to 100. As you might expect, any score above 50 means businessowners think things are good and will get better. Below 50 and owners think their earnings prospects aren't quite as rosy.