Small Firms Struggle Under Trade Disputes and Weaker Spending: Equifax

A new report shows some small businesses across Canada are facing challenges as consumers cut back on spending and navigate a complicated trade landscape.

 

Equifax Canada’s latest business credit trends report says more than 286,000 businesses missed at least one credit payment in the second quarter, up 5.6 per cent from a year ago.

 

Jeff Brown, head of commercial solutions at Equifax Canada, says small businesses are navigating a complex environment.

 

He says sectors tied to international trade and consumer discretionary spending are under stress, while other businesses are holding steady or even improving.

 

Equifax says delinquency levels in consumer-sensitive industries — such as accommodation and food services, retail trade, and arts and entertainment — remain elevated year-over-year.

 

Brown says the cost of essentials such as groceries and rent continues to climb, which limits household discretionary spending and, in turn, hurts businesses that provide non-essential goods and services.

 

 

 

 

This article was first reported by The Canadian Press