Why Is The Small Business Industry More Confident After August 2014? It’s a great time to be a small business owner! The National Federation of Independent Business found small business optimism rose 0.4 points to 96.1 this past August, the second-highest rank since October 2007. The index was based on 598 randomly sampled businesses in the NFIB’s membership. Six out of ten index components increased, though the index is still four points lower than before the financial crisis and recession in 2007. “Expectations are still glum, although improving grudgingly. More owners still think business conditions will be worse in six months than think they will be better. Few see the current period as a good time to expand,” said NFIB chief economist Bill Dunkelberg. “The outlook for improvements in real sales volumes faded. Interest in borrowing continues to remain at record low levels; owners are satisfied with inventories and aren’t planning a lot of investment. There is still no evidence that we are about to ramp up spending and hiring to ‘3 percent’ GDP growth levels.” He also explained that economic uncertainty is making it difficult for small business owners to be optimistic. According to Daily Finance, more owners said they expected business conditions to improve in coming months and planned to increase capital spending. Some owners feel improvement is possible in business conditions, though economic growth is happening slower than expected by forecasters and Federal Reserve officials.
Posted on: Thu, 11 Sep 2014 13:12:08 +0000
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