TORONTO, July 16,
2024 /CNW/ - The Canadian economy continued growing
modestly in Q2 2024, finds the latest Main Street
Quarterly report by the Canadian Federation of Independent
Business (CFIB).
Key highlights of the Main Street Quarterly report for Q2
2024
- CFIB's forecasts in partnership with AppEco suggest the
Canadian economy grew by 2.0% in Q2 on the heels of a 1.7% growth
in Q1. The third quarter should continue growing at about the same
pace as long as inflation remains under control and the central
bank continues cutting rates.
- The forecast for the total Consumer Price Index (CPI) inflation
shows it receded to 2.8% in Q2 and is expected to further decline
to 2.4% in Q3.
- The national private sector job vacancy rate
decreased to 3.3% in Q2. This represents 458,000 unfilled
positions.
- The quarterly sectoral profile focuses on firms in the personal
services sector. The analysis shows that historically high
shares of repair and maintenance businesses as
well as businesses providing personal care services are
affected by borrowing costs and product input costs.
- This edition also includes a special analysis of
the sky-high cost of doing business. The overall
business costs, measured by unit cost, are currently at a very high
level. Total unit costs were stable before the pandemic but spiked
by 26% during 2022 and remained elevated since.
Conclusions by CFIB's chief economist and vice-president of
research Simon Gaudreault:
- The decent growth in the economy in the first half of 2024
correlates with a recent uptick in long-term business
optimism. While encouraging, it doesn't mean that all is well for
small businesses. They're still grappling with steep cost increases
on all fronts, including wage pressures, significant energy and
fuel costs, and high interest rates.
- General uncertainty and various cost pressures are affecting
small businesses' ability to invest. After a surprise surge in Q1,
private investment completely reversed course and declined to 2.8%
in Q2.
Read the full Main Street Quarterly.
About AppEco
AppEco is a consulting firm specializing
in economic and strategic analysis. It possesses in-depth technical
expertise and delivers first-class services in applied economics:
economic impact studies, surveys and polls, cost-benefit analyses,
modelling, econometrics, pricing, etc. Its mission is to provide
useful services that contribute to economic growth and the success
of clients' projects. AppEco works with firms of all sizes, from
small to multinationals, as well as governments and non-profit
organizations. Learn more at appeco.ca/en.
About CFIB
The Canadian Federation of Independent
Business (CFIB) is Canada's
largest association of small and medium-sized businesses with
97,000 members across every industry and region. CFIB is dedicated
to increasing business owners' chances of success by driving policy
change at all levels of government, providing expert advice and
tools, and negotiating exclusive savings. Learn more at
cfib.ca.
SOURCE Canadian Federation of Independent Business