Small business sentiment declined in June according to the NFIB Optimism Index. The index fell by 3.0 points to 91.4, the lowest level since October 2011.
Nearly one-quarter of owners cite weak sales as their most important business problem (23%), followed by taxes (21%) and unreasonable regulations and red tape (19%). Only 3% reported that financing was their top business problem.
Ninety-three percent of all owners reported that all their credit needs were met or that they were not interested in borrowing. Twenty-nine percent of all owners reported borrowing on a regular basis, down 3 points from May, and a net 7% reported loans “harder to get” compared to their last attempt, down 2 points.
After reaching a five year high of a net 4% in April, the net percent of all owners reporting higher nominal sales over the past three months fell to -5%. Expectations for future sales do not look much better, declining 5 points to -3% of all owners, producing a 4 month decline of 15 percentage points.
Capital expenditures are consistent with the slow performance of the economy. The frequency of reported capital outlays over the past six months dropped 3 points to 52%. The net percent of owners expecting better business conditions in 6 months was a negative 10%, an 8 point decline from May.
Read the report.