Tuesday, September 10, 2013

Small Business Optimism Dropped Slightly in August

The NFIB’s Small Business Optimism Index shrank slightly by 0.1 points in August, settling at 94.0.

Financing continues to be the least cited factors holding back small business conditions, with only 3% of respondents citing it as the single most important problem. Taxes and government requirements were the most commonly cited problems, with 44% of respondents citing one as the largest problem facing small businesses.

The details of the report were mixed. Job creation plans were at the highest level since 2007, jumping 7 points to a net increase of 16% in August. However, firms also shed the largest number of employees in months.

Expectations for business conditions in six months also became more negative. Consumer spending was sluggish for small businesses, up 0.5% year over year. Weaker sales impacted wages, which fell 35%, a 13 point decline in August.

Read the NFIB report.

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