How an uptick in Canadians' confidence could bode well for small businesses

Some Canadians may be doing more shopping, making more major purchases and spending money on home and auto repairs in the near future.

According to index data for March released by the Conference Board of Canada, consumer confidence showed modest gains climbing 2.7 points since last month and resting comfortably above the December low of 67.7.

Based on responses from those surveyed, almost 35 percent believe it is a good time to make a major purchase and the majority of respondents expect their financial situation to be unchanged in six months.

Does this mean that consumers will continue to frequent local businesses and maintain regular spending patterns?

"It appears that most people feel unaffected by the ongoing Canadian recession and believe they will continue to be unaffected going forward," according to the Conference Board.

A slightly improved outlook on the jobs situation was recorded in the latest figures, but the research organization says it may be temporary as new job release reports could change opinions on future employment prospects.

In Ontario, confidence levels were unchanged, but otherwise throughout Canada consumer sentiment edged upward.

One region of Canada where both businesses and consumers are faring relatively well is Manitoba.

A report from the Canadian Press on the newly released consumer confidence figures highlights the "steady-as-she-goes" growth pattern the province has demonstrated.

Manitoba has bucked the national trend with low unemployment rates and retail sales that fell very little compared to numbers reported across the country, according to the article.

"The domestic economy in Manitoba is in pretty good shape," said Marie-Christine Bernard, associate director of provincial economic trends at the Conference Board of Canada.

"We're forecasting some job growth for 2009, contrary to most of the provinces, where they will see job losses," Bernard was quoted as saying in the article.

Despite the positive news from the Conference Board, businesses across Canada are still monitoring budgets, payroll and other expenses to keep operations in a position to weather the recession.

A turnaround in the Canadian economy isn't expected to fully take hold until the U.S. begins to show sure signs of a rebound. Economic recovery in the U.S. will likely lead to an uptick in Canadian exports.

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