Among Small-Business Owners, Signs of Hope
Small-business owners feel increasingly hopeful about the economy based on the National Federation of Independent Business (NFIB) monthly optimism index – since March, it has increased by 6.9 points. Similarly, the Discover Small Business Watch monthly optimism index increased by 1.2 points from June to July and 30 percent of survey respondents said the economy is improving. However, small businesses are still wary, minimizing inventory and workforce. Specifically, the NFIB index reports that more small companies will reduce than plan inventory over the next three to six months and the ADP National Employment Report found that companies employing less than 50 eliminated 177,000 jobs in June alone. Even those planning on expansion are holding off due to uncertainty concerning the recovery and continually tight credit markets.
Source: BusinessWeek.com | August 4, 2009