Newsstand

Sponsor this channel

Small Business Owners Skeptical of Economic Recovery

    Submitted by Anonymous (not verified) on Sat, 03/27/2010 - 21:43

    Index Indicates the Current Recession is More Sustained than the 1980-1982 Recession

    The National Federation of Independent Business Index of Small Business Optimism recently rose to 89.1 (1986=100), 8.1 points higher than the survey’s second lowest reading (the lowest reading was 80.1 in the second quarter of 1980).

     

    In the 1980-82 recession period, the Index was below 90 in only one quarter. In this recession, the Index has been below 90 for six quarters, indicative of the severity of this downturn.   Optimism Components  Net % Change

     

    Snapshots from the Survey:

    ·       

    Employment: Over the next three months, 16 percent plan to reduce employment (unchanged), and 9 percent plan to create new jobs (up 2 points).

    ·       

    Capital Spending: Plans to make capital expenditures over the next few months fell 1 point to 17 percent, just 1 point above the record low.

    ·       

    Inventories and Sales: The net percent of all owners (seasonally adjusted) reporting higher sales in the past three months remained low at negative 31 percent, down 5 points and only 3 points above the record low.

    ·       

    Inflation: The weak economy continued to put downward pressure on prices. Ten percent of the owners reported raising average selling prices, but 30 percent reported price reductions.

    ·       

    Earnings: Reports of positive profit trends were unchanged at a net-negative 40 percentage points. The persistence of this imbalance is bad news for the small business community and a contributor to the reported difficulties in obtaining credit. 

    ·       

    Credit: For those who want to borrow, getting a loan continues to be difficult, with a net 14 percent reporting loans harder to get than in their last attempt.

    For more information, visit www.NFIB.com

    Previously published in the February 2010 issue of HOME BUSINESS® Magazine, an international publication for the growing and dynamic home-based market. Available on newsstands, in bookstores and chain stores, and via subscriptions ($19.00 for 1 year, six issues). Visit www.homebusinessmag.com

    V17-1 Add: 05/10

     

     

     

     

     

    © Copyright 2012 Home Business Magazine. All Rights Reserved. Privacy Policy | Terms and Conditions
    Infoswell Media