Tuesday, May 14, 2013

Small Business Optimism Rose in April

The NFIB’s Small Business Optimism Index rose 2.6 points in April, reaching 92.1. The index is still weak, only 1.4 points above the recovery average of 90.7 and well below the long run average of 98.1.

Financing continues to be the least citied challenge facing small business, with only 2% of respondents reporting it as their single most important problem, a 1% drop from the previous month. Taxes and government requirements remained unchanged as the first and second most often cited problems for small businesses at 23% and 21% respectively.

Competition from large business and quality of labor increased, while inflation and cost of labor decreased from March. Despite the increase in the index, small businesses continue to remain pessimistic about the economy and on net a negative 15% expected business conditions to improve in 6 months. The good news is that the figure is a 13% increase over March.

Read the NFIB report.

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