Small business community remains pessimistic
The small business community showed low expectations and high pessimism in September, the National Federation of Independent Business revealed in a recent report.
According to the NFIB’s Small Business Optimism Index, pessimism increased in September, with the Index decreasing 0.1 points and falling to 92.8.
This “recession-level reading” was led my labor market concerns, the NFIB noted. This is the 32 time since June 2009 that the Index registered below 93.0.
“The election is just weeks away and essentially a horse-race, and its outcomes would have vastly divergent policy implications,” William Dunkelberg, NFIB chief economist, said in a statement.
Most business owners reported no interest in a business loan, the NFIB reported, and just 8 percent reported not getting all of the credit that they wanted.
“Credit” was the top business problem of just 2 percent of business owners in September, while “taxes, regulations and red tape” and “poor sales” each was named by 21 percent as the top current business problem.
Optimism for the category of “expansion” did rise slightly, the NFIB noted, as a 3-point gain was seen in the number of owners that saw the current time as a good time to expand and a 4-point gain was seen in the number of owners who expect expansion conditions to be better in six months.
In regards to job creation, 10 percent of owners plan to increase employment at their company (a 3-point decrease), while 11 percent plan job reductions (a 2-point increase).