Small business confidence is up nationally, but continues to lag across Atlantic Canada, according to the latest national survey by the Canadian Federation of Independent Business.

The national average climbed to 65 out of 100 in December, almost a point-and-a-half above its November level, said Richard Dunn, a policy analyst with the small business organization.

The so-called business barometer index has historically hovered between 65 and 70 when the economy is expanding, he said.

So the rate is considered good news for Canada's economic performance, which has been constrained by uncertainties in foreign markets.

But in New Brunswick, Prince Edward Island and Newfoundland and Labrador, the December rate was tied at 59.8, said Dunn.

Meanwhile, Nova Scotia ranked as the country's least optimistic province at 55.6.

Atlantic business owners are concerned about government cuts, rising energy and insurance costs, and pressure to raise the minimum wage, said Dunn.

"You can't pay people more when you don't have more money coming in," he said.

"They're getting squeezed, so in some cases they're having to make difficult decisions and that might be scaling back hours or laying off altogether."

In addition, business owners think they are spending too much time filling out forms and paperwork rather than working on their business, Dunn said.

"It's certainly not a flashy topic, you know it's weeds," he said.

"It's like weeding your garden, nobody ever wants to do it, but you gotta do it to make things grow right."

The national survey clearly shows an east-west divide, said Dunn.

Business owners in Alberta and Saskatchewan are the most optimistic in the country, at 73.6 and 72.2 respectively, while British Columbia is stable at 68.0.

Optimism in central Canada is close to the national average, with Quebec businesses at 65.3, Manitoba firms at 64.8, and Ontario businesses slightly behind at 63.5, he said.

Although confidence in Atlantic Canada continues to lag, all is not lost. An index level above 50 means more owners expect their businesses' performance to be stronger in the next year than those who expect a weaker performance, according to the CFIB.

Nationally, 41 per cent of business owners describe their state of business as being in good shape, almost three times the 14 per cent who say it is in bad shape.

The services sector is the most optimistic nationally, led by the arts, information and recreation industry at 72.0, according to the survey.

The wholesale goods sector is close behind at about 68, while manufacturing came in at 63.6 and construction, 60.6.

Meanwhile, the retail and hospitality sector indices are down below 60.

There's an indication that sales were lower than small, independent retailers had hoped in December, said Dunn. He believes people may have done more shopping at big box stores.

The December findings are based on 900 responses, collected from a stratified random sample of CFIB members to a controlled-access web survey.

The results are considered statistically accurate to +/- 3.3 per cent 19 times in 20.