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By HEATHER MCLAUGHLIN
mclaughlin.heather@dailygleaner.com

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Business optimism in New Brunswick is the third highest in Canada, according to a Canadian Federation of Independent Business small-business survey.

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The federation has come up with its own business barometer, a scoring system that looks at short-term business performance, capital spending plans and employment indicators.

According to the data, the federation said only Prince Edward Island and Saskatchewan rank higher than New Brunswick in terms of a positive business outlook.

Close to two-thirds of employers in New Brunswick plan to hold the line on full- and part-time hiring, while one-third expect to increase payrolls. Only seven per cent indicated they might have to cut workers.

More than half of the small businesses said they have access to business credit. Major cost concerns relate to tax and regulatory expenses, insurance, bank account and processing fees, and energy costs.

Only 16 per cent said the overall state of business in New Brunswick is bad.

Leanne Hachey, vice-president Atlantic Canada of the business federation, said the region is doing relatively well.

"We're nowhere near the gloom that's happening in other parts of the country and you can pretty well say that for all four Atlantic provinces," Hachey said.

Relative to the population size, the region has more recession-proof jobs than provinces that depend on manufacturing opportunities.

"People still need to go to the dentist, to the doctor, to school, and those jobs typically don't diminish during a recession," Hachey said.

"We don't have a huge manufacturing base and, thirdly, we're not export dependent, so while we do have some healthy levels of exports, nowhere near the levels we would see in Ontario, Alberta or Quebec."

During a recession, that helps keep the region stable, she said. On the flip side, the region doesn't have the highs that other regions experience.

Construction of an energy hub in Saint John is bolstering business confidence.

"The fact that the New Brunswick government has taken huge, bold steps on the tax front with the plan they announced in the last budget gives a sense that they're planning for the future," Hachey said.

The fact that all New Brunswickers - businesses and families - are going to be paying a little less in tax this year than they did last year is on the right track."

New Brunswick businesses would still like to see the government reduce red tape and regulations and all small- to medium-sized businesses across the country are still campaigning for lower credit card and debit processing fees, she said.

Nationally, the industries most pessimistic about growth are the natural resources, transport and agricultural sectors. A drought is crippling farmers in Western Canada.

Elsewhere in the country, rain is hampering the start of the tourist season which is sluggish.

The federation said health care, business services, information, entertainment and retail are projecting more positive outcomes.

The barometer, which is compiled based on a controlled-access web survey, is accurate plus or minus 3.2 per cent, 19 times out of 20. The results are for the April to June period.

The federation said capital spending plans are muted with only 30 per cent of business owners planning expenditures on computer or communications equipment in the next three or four months.

At the national level, overall business optimism among Canada's small business owners declined in June.

A copy of the report can be found at www.cfib.ca/research/barometer/default.asp.