SME Confidence Index

1- Relatively stable economic conditions

The index is similar to the November 2012 index (+0.5) and stands at 62.7 out of 100. However, it has decreased by 3.7 points since February 2012.

The level of optimism of SME managers is slightly up. Compared to November 2012, it increased by 3.1 points with respect to the future of Québec SMEs in general (average score of 62.0) and 1.7 points with respect to their own companies (average score of 70.0).

2- Positive sales forecasts, but still weak

Most SME managers are expecting that their sales will increase in the next 12 months, but in a much lower proportion than in prior years. The average score is 60.9 for this indicator, similar to November 2012 (60.8), but down compared to February 2012 (64.6).

3- Slight increase in the number of employees

Taking into account all hirings and layoffs expected in the next 12 months, SME managers expect a net increase in the number of their employees in Québec, but one fifth of them expect instead a net decrease in their workforce in Québec. The average score for this indicator is 57.8, down 1.9 points from November 2012 and 6.4 points from February 2012. This is the lowest score recorded to date. Operating costs (55%) and labour recruitment (48%) continue to be a major concern.

4- Rather favourable financing conditions

The majority of SME managers consider that financing conditions will be rather favourable for their companies in the next 12 months. However, one quarter of them are pessimistic about these conditions. The average score is 62.3 for this indicator, which is slightly up compared to November 2012 (+1.6 points) but down compared to February 2012 (-3.1 points).

5- Decrease in investments

SME managers consider investing in modernizing the equipment of their companies during the next 12 months. However, this indicator is down compared to November 2012 (-2.2 points) and September 2011 (-4.2 points). The average score is 61.5. This is the lowest score recorded to date.

SME managers are more optimistic than in fall 2012 about the future of SMEs in Québec for the next 12 months: the average score increased slightly to 62.0 (vs 58.9 in November 2012).

 

Compared to other SMEs, SME managers are slightly more optimistic about the future of their own companies for the next 12 months. This indicator is slightly up: the average score is 70.0 (vs 68.3 in November 2012).

The majority of SME managers still consider investing in modernizing the equipment of their companies in the next 12 months. The average score is 61.5 for this indicator (vs 63.7 in November 2012. It is nevertheless the lowest score recorded to date.

While the majority of SME managers expect a net increase in the number of their employees in Québec (58% vs 63% in November 2012), one fifth of them (21% vs 19% in November 2012) expect instead a net decrease in their workforce in the next 12 months. The average score is 57.8 for this indicator (vs 59.7 in November 2012), the lowest recorded to date.

SME managers believe that financing conditions will be rather favourable for a company like theirs in the next 12 months. However, 24% of them are of the opposite view. The average score for this indicator increased slightly to 62.3 (vs 60.7 in September 2012).

1- Unstable economic conditions

The index has dropped 5.2 points from September 2011. It is also down (-1.2 points) from the last measurement (September 2012) and stands at 62.2 out of 100.

The level of optimism of SME managers continues to fall. Compared to September 2011, it slipped 9.2 points with respect to the future of Québec SMEs in general (average score of 58.9) and 6.7 points with respect to their own companies (average score of 68.3). 

2- Positive sales forecasts, but still trending downwards

The majority of SME managers are still expecting that their sales will increase in the next 12 months, but in a much lower proportion than in last September. The average score is 60.8 for this indicator, down 2.7 points compared to September 2012 (63.5) and 5.6 points compared to September 2011 (66.4).

3- Slight increase in the number of employees

Taking into account all hirings and layoffs expected in the next 12 months, SME managers expect a net increase in the number of their employees in Québec, but one fifth of them expect instead a net decrease in their workforce in Québec. The average score for this indicator is 59.7, down 1.7 points from September 2012 and 4.1 points from September 2011.

Operating costs (56%) and labour recruitment (55%) continue to be a major concern.

4- Rather favourable financing conditions

The majority of SME managers consider that financing conditions will be rather favourable for their companies in the next 12 months. However, one quarter of them are pessimistic about these conditions. The average score is 60.2 for this indicator, which is stable compared to September 2012 (-0.2 point) but down compared to September 2011 (-3.0 points).

5- Stable investments

SME managers consider investing in modernizing the equipment of their companies during the next 12 months. This indicator is stable compared to September 2012 (+0.6 point) but down compared to September 2011 (-2.8 points). The average score is 63.7. However, 30% of them are contemplating instead the status quo or a divestiture.

SME managers are increasingly less optimistic about the future of SMEs in Québec for the next 12 months: the average score is 58.9 (vs 61.4 in September 2012), the lowest recorded to date.

Compared to other SMEs, SME managers are slightly more optimistic about the future of their own companies for the next 12 months. However, this indicator is down again: the average score is 68.3 for this indicator (vs 70.1 in September 2012), the lowest recorded to date.

Many SME managers still consider investing in modernizing the equipment of their companies in the next 12 months. The average score is 63.7 for this indicator (vs 63.1 in September 2012).

While the majority of SME managers expect a net increase in the number of their employees in Québec (63% vs 62% in September 2012), one fifth of them (19% vs 25% in September 2012) expect instead a net decrease in their workforce in Québec in the next 12 months. The average score is 59,7 for this indicator (vs 61.4 in September 2012), which is similar to the May 2012 score.

SME managers believe that financing conditions will be rather favourable for a company like theirs in the next 12 months. However, 26% of them are of the opposite view. The average score is 60.7 for this indicator (vs 60.9 in September 2012).

1-Unstable economic conditions

The index has dropped 4.0 points from September 2011, the largest decrease since the implementation of the new index in May 2011. It is also down (-2.4 points) from the last measurement (May 2012) and stands at 63.4 out of 100.

The level of optimism of SME managers is at its lowest. Compared to September 2011, it slipped 6.7 points with respect to the future of Québec SMEs in general (average score of 61.4) and 4.9 points with respect to their own companies (average score of 70.1).

2-Positive sales forecasts, but down from 3 months ago

The majority of SME managers are still expecting that their sales will increase in the next 12 months. The average score is 63.5 for this indicator. However, this result is lower than the one observed both 3 months ago (-1.9 points) and a year ago (-10.0 points).

3-Slight increase in the number of employees

Taking into account all hirings and layoffs expected in the next 12 months, SME managers expect a net increase in the number of their employees in Québec, but a growing proportion of them expect instead a net decrease in their workforce in Québec. The average score for this indicator is 61.4, up from May 2012 (1.8 points), but down from September 2011 (-3.5 points).

Operating costs (55%) continue to be a major concern and are as important as labour recruitment (55%).

4-Rather favourable financing conditions

The majority of SME managers consider that financing conditions will be rather favourable for their companies in the next 12 months. However, one quarter of them are pessimistic about these conditions. The average score is 60.9 for this indicator, down 2.0 points compared to May 2012 and 2.8 points compared to September 2011.

5-Stable investments

Although there is a large number of them, SME managers who consider investing in modernizing the equipment of their companies during the next 12 months are declining compared to the previous wave (-3.1 points) and September 2011 (-3.5 points). The average score is 63.1 for this indicator. However, 29% of them are contemplating instead the status quo or a divestiture.

SME managers are less optimistic about the future of SMEs in Québec for the next 12 months: the average score is 61.4 (vs 67.5 in May 2012), the lowest recorded to date.

Although this is the lowest score recorded for this indicator, SME managers continue to see the future of their own companies with optimism for the next 12 months: the average score is 70.1 for this indicator (vs 72.6 in May 2012).

Many SME managers consider investing in modernizing the equipment of their companies in the next 12 months. The average score is 63.1 for this indicator (vs 66.2 in May 2012), the lowest recorded to date.

While the majority of SME managers expect a net increase in the number of their employees in Québec (62% vs 66% in May 2012), a growing proportion of them (25% vs 20% in May 2012) expect instead a net decrease in their workforce in Québec in the next 12 months. The average score is 61.4 for this indicator (vs 59.6 in May 2012).

SME managers believe that financing conditions will be rather favourable for a company like theirs in the next 12 months. However, one quarter of them are of the opposite view. The average score is 60.9 for this indicator (vs 62.9 in May 2012).