Small business sentiment continued to bounce back from trade war woes in May but remained at a level consistent with a recession.

Nationally, the Canada Federation of Independent Business’s 12-month confidence index rose five points from 34.7 in April to 40 points in May, with the short-term index up 1.9 points to 42.4 points. In normal times, these measures are at or above 60 points.

Trade-reliant businesses, understandably, were particularly pessimistic, with exporter sentiment at 26 points, and importer confidence at 29.

The long-term index in B.C. rose by 3.2 points to 39.1 points, but was still in negative territory, and fifth-highest among provinces. The short-term index improved more, up 7.4 points to 44.4, the highest level since December 2024.

Insufficient demand and shortages of skilled labour continued to........

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