Small business confidence edged up at the start of April after its historic descent in March, gaining just under seven index points to 37.7 on the Business Barometer released Wednesday by the Canadian Federation of Independent Business.

“The small bounce back in business confidence we’ve seen since the beginning of the month is a sign that the raft of unprecedented government intervention has had some effect, but we’re nowhere near a return to business as usual,” said Ted Mallett, CFIB’s vice-president and chief economist. “In fact, even more business owners are planning to lay off staff in the next three months than when we surveyed them two weeks ago.”

The CFIB said only five per cent of small businesses foresee adding on full-time staff in the next three months, while 63 per cent say they will have to cut back. Less than one-tenth of business owners say their business is in a good state, compared to 58 per cent who say it is in a bad state. Wage and price plans and capital spending have all seen dramatic drops as well, said the national organization which represents small businesses across the country.

It said an index level nearer to 65 indicates that the economy is growing at its potential.

“Quebec remained the least optimistic province, though it gained 8.7 index points to 24.4. Newfoundland and Labrador (36.1), Alberta (36.8) and British Columbia (37.8) all posted results close to the national average. New Brunswick (47.3) and Manitoba (46.2) were the most optimistic provinces. Ontario (41.0), Saskatchewan (42.6), Prince Edward Island (45.5) and Nova Scotia (45.9) all posted middle-of-the-pack results in the low- to mid-40s,” explained the CFIB.

“Agriculture dropped to the lowest optimism level of any sector at 23.9, followed by manufacturing (32.6), natural resources (33.3) and hospitality (33.8). The transportation sector was the most optimistic at 56.6. Personal services (47.6) and information, arts and recreation (44.7) were also less pessimistic. All other sectors posted results in the mid-30s range.”

Survey results can be found here.

Alberta small business confidence increased by almost 11 points in April to 36.8 after falling to a record low of 26.2 points in March. Alberta’s index is the third lowest in the country and is only slightly behind the national index of 37.7 points.

“Even though businesses are not operating as usual, the increase in Alberta’s index indicates measures already announced by governments have provided some relief,” said Annie Dormuth, CFIB’s Alberta Director of Provincial Affairs. “However, small businesses are still facing many challenges and governments need to ensure further relief measures are implemented quickly to help small businesses survive and be able to recover once this is over.”

The CFIB said only four per cent of Alberta small businesses foresee adding on full-time staff in the next three months, while 66 per cent say they will have to cut back. Six per cent of business owners say their business is in a good state, compared to 62 per cent who say it is in a bad state.