Business confidence in Manitoba lowest among provinces: report

Manitoba businesses are feeling less confident heading into the holiday shopping season, according to a new report.

The Canadian Federation of Independent Business (CFIB) released its business barometer for Manitoba on Thursday, showing the long-term confidence for members at 49.3 per cent, the lowest among the provinces.

Brianna Solberg, director of provincial affairs with CFIB, said these numbers are staggering, especially as holiday shopping is starting to ramp up.

“They have not seen the sort of revenues that they would expect to see around this time of year,” she said. “It basically says that despite the Bank of Canada's interest rate cuts, consumers aren't necessarily running out of the house to go and spend money, and when they are, we know that their spending habits have shifted to online, multinational retail chains.”

Solberg said inflation has resulted in a decline in local shopping and a move to online retailers and big box stores.

“Inflation is still squeezing everybody's budgets,” she said. “We have consumers who are holding their cards close to their chest.”

Solberg said another issue businesses are dealing with is rising insurance costs stemming from crime and vandalism.

“They're not filing an insurance claim because they don't want their already sky high premiums to become even more expensive. They're shouldering those costs to replace a broken window or replace stolen goods on their own,” she said.

Solberg said businesses are “looking for a light at the end of the tunnel” and called on government officials to provide affordability relief. She said the CFIB also encouraged people to continue shopping locally to help keep money in the community.