Business confidence is an economic indicator that measures the amount of optimism or pessimism that business leaders feel about the prospects of their companies. In Canada, the Index of Business Confidence is compiled by the Conference Board of Canada. To come up with the Index of Business Confidence, the Conference Board surveys chief executive officers and chief financial officers of Canadian businesses on a quarterly basis. The Conference Board has been collecting business confidence data since 1977.
Business confidence is important because when businesses are more confident, they are more likely to spend money to grow their business, and as they spend money, it trickles through the economy.