Optimism Down Among Small Business Owners
Our firm has substantial experience assisting business owners and operators create and cultivate their enterprises. For small business owners, confidence in the government has bogged down with the sequestration and a new report suggests a decrease in small business optimism after several months of improvement.
In July, the National Federation of Independent Businesses (NFIB) released its July report showing that its Small Business Optimism Indexhad declined by nearly a point(.09) in the last month. In parallel, the Congressional Budget Office (CBO) projected the economy could gain 1.6 million jobs by the third quarter of 2014 if automatic spending reductions were cancelled in August of this year.
Results of the NFIB survey included:
*Two index components increased, two components remained static, and six components declined. Of these components, concerns about present and future inventory dominated the decline in confidence.
*In labor, just over half of responding business owners noted they had hired or tried to hire in the last three months. Gains in employment by some businesses were offset by job cuts by other employers.
*Capital expenditures are currently used by more owners to maintain current service rather than expand their business. Weak consumer spending and other factors led 18 percent of owners to report their top business problem is poor sales.
*Positive earning trends declined to negative 23 percent, considered a poor reading by the NFIB.
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