A monthly survey from the National Federation of Independent Business shows that small businesses aren’t optimistic about the economic climate.
The federation’s Small Business Economic Trends index is still stuck at recession levels, according to a report released today.
“Owner optimism remains stuck at recession levels,” the report’s author writes. “The proximate cause is very weak consumer spending, better than a year ago, but that was pretty bad.”
The monthly survey measures attitudes about employment, sales earnings and spending. In November, the index was down 0.8 points.
“The biggest problem continues to be a shortage of customers,” said William Dunkelberg, chief economist for NFIB. “Apparently, owners can’t find a good reason to be optimistic about the future of the economy or their personal future.”
He added: “Spending or hiring will not increase until (profit) trends reverse. Poor sales and price cuts are responsible for much of the weakness in profits.”
Small business owners reported a decline in average employment per firm of 0.58 workers during the prior three months, a release from the federation said. Nine percent of owners increased employment, but 21 percent reduced employment.
“The ‘job generating machine’ is still in reverse, said Dunkelberg. “Sales are not picking up, so survival requires continuous attention to costs, and labor costs loom large.”
Know a small business you think we should write about? Contact Herald writer Amy Rolph at arolph@heraldnet.com.
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