Tuesday, September 9, 2014

Small Business Optimism at Second Highest Level Since 2007

Small business optimism increased in August by 0.4 points to 96.1, the second highest level since October 2007. August’s gain was driven by increases in plans to make capital outlays and expectations that the economy will improve.

Financing continues to be the least cited concern holding back small business conditions, with 2% of respondents citing it as the single most important problem. Taxes remained the top spot rising 2% to 24%, followed by government requirement and red tape, which declined to 19%.

Six of the ten index components improved slightly, three components declined and one component, credit conditions, was unchanged. Expectations that the economy will improve increased 3 points, the second consecutive month of strong growth.

Expectations for higher real sales took the biggest hit, dropping 4 points to 6%. August was first month plans to increase employment declined, following a ten month positive gain.

Read the NFIB report.

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