Tuesday, July 8, 2014

Small Business Optimism Declined in June

The NFIB’s Small Business Optimism index dropped 1.6 points to 95.0 — the first decline in 4 months. Declining expectations for the economy to improve heavily contributed to the fall.

Financing continues to be the least cited concern holding back small business conditions, with 3% of respondents citing it as the single more important problem. Taxes remained in the top spot, with 22% of respondents citing it as the single most important problem. Government requirements and red tape remained number two at 20%.

The details of the report were mixed. Six of the ten index components shrank. Expectations for the economy to improve took the biggest hit, dropping 10%.

On a bright note, plans to increase employment and current job openings both increased 2%. Twelve percent of owners reported adding an average of 3.3 workers per firm, producing a net gain of 0.05 workers per firm in June. The skills gap is noticeable — 53% of respondents tried or did hire in the last three months, however 43% found that there weren’t qualified applicants.

Read the NFIB release.

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