The Canadian Federation of Independent Business says small business confidence fell steeply in September.

The CFIB Business Barometer shows the national three month outlook dropped more than 12 points to 43.2. In Saskatchewan, the three-month outlook dropped by 6 points to 49.3 and the 12-month outlook dropped by 3.9 points to 64.7.

CFIB blames the drop in confidence on labour shortages, supply chain challenges, and the impending end of federal support programs.

CFIB’s Simon Gaudreault says, “Small businesses are not back to pre-pandemic sales or staffing and are now facing a second tough winter with lower-than-normal cash reserves and higher than normal debt. It’s therefore not surprising confidence has plummeted, but it’s a worry when it comes to the broader economic picture in Canada. ”

The CFIB says Small and medium-sized enterprises (SMEs) play an essential role in the Canadian economy. They are responsible for over two-thirds of private sector employment and contribute more than half of Canada’s private sector gross domestic product (GDP).

All provinces registered significant drops in optimism on both the long- and short-term indexes, with businesses in Quebec and Ontario seeing the biggest decreases. On the sectoral side, professional services (-15 points), hospitality (-11 points), and construction (-9 points) experienced the biggest short-term drops, while agriculture (-11 points) and retail (-10 points) saw the greatest long-term decreases.