OTTAWA - A new survey suggests business confidence tumbled in June as optimism about Canada's economic recovery took a hit with many small and medium-sized firms.
The Canadian Federation of Independent Business confidence barometer fell sharply to 63.5 per cent, erasing the gains seen in May.
The CFIB says a reading of between 65 and 70 is indicative of an economy growing at its potential, so the result suggests there is still some skepticism about the strength of the recovery.
The business group says the weakness affected mostly hospitality and construction industries, so it does not believe it is the beginning of a protracted trend.
It says new order indicators remain strong, and local demand and short-term hiring intentions are also positive.
But it notes that the 39 per cent of owners who said their businesses are in good shape is lower than last year.
The June findings are based on 1,042 responses from CFIB members received through June 16.