Tuesday, October 14, 2014

Small Business Optimism Dropped Below Pre-Recession Average in September

Small business optimism declined 0.8 points in September to 95.3, settling 5 points below the pre-recession average. September’s drop was driven by job openings and planned capital outlays.

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. Government requirement and red tape overtook the top spot at 22%, with taxes dropping to the number two spot at 21%.

Four of the ten index components improved and the remaining six declined. Of the six, two declined by a combined 10 points total and account for the overall index decline. Job openings and planned capital outlays took the biggest hits, declining 5 points each, and those two components correlate directly with GDP and job growth, potentially weighing down on third quarter GDP.

Read the NFIB report.

No comments:

Post a Comment

Please read our comment policy before making a comment.