The CFIB Business Barometer on small business sentiment survey fell 11.7 points to 46.3 in May, fully reversing the winter/early spring strength, said Bank of Montreal (BMO).
The weakness was across the board, noted the bank. Every sector was softer, and every question pointed to a more pessimistic outlook.
Surging fuel costs are clearly weighing heavily, though expected price increases slipped a touch to 3.1% from 3.2%, but that's still up from 2.6% in March, pointed out BMO.
Notably, the big drop is consistent with the ongoing weakness in Canadian data, stated the bank. The Citi Economic Surprise Index for Canada has rarely been this negative.
Perhaps Canada is nearing max macro bearishness, but it's clear the economy is struggling to gain traction with trade and energy worries restraining activity, according to BMO.