Small Business Optimism is Down

A quick follow up to yesterdays post – How to Erode the Middle Class

Emily Maltby wrote on CNNMoney.com a piece called Small-business owners’ outlook bleak. Here are some items I liked:

The National Federation of Independent Business’ monthly Index of Small
Business Optimism fell one point to 88.2 in July, continuing one of the
longest strings of recession-level readings in the 22-year history of
the survey.

Spending activity has declined since September and has fallen to early ’80s levels, according to the NFIB’s poll results.

Employment also remains soft: 10% of those polled said they had hired new workers, but 15% reduced employment at their firm.

The NFIB’s chief economist, Bill Dunkelberg, thinks the outlook is glum
for the economy for the next six months. “That said, we should remind
everyone that the U.S. is never uniformly in a boom or a recession,” he
said. “You really have to analyze what’s happening in your market where
you are and how it ties in to the fortunes of the larger economy.”

Not all owners are pessimistic; some treat the recession as a creative
challenge. Even in the hard-hit construction industry, 19% of owners
polled by the NFIB said plan to expand their workforce, while just 12%
intend to cut back – and while 13% have cut their selling prices, 48%
said they hiked them.

Borrowing activity has stayed on pace with typical trends, and few owners say loans are hard to get.

About benleeson
My name is Ben Leeson. I currently work for a large financial company in IT. I went to school at Marist College in Poughkeepsie, NY. I graduated with a B.S. in Business Administration concentrating in HR. Professor William Brown taught me and I enjoyed his classes; even acquiring an appreciation for just about all things HR. I didn’t pursue a job in that field after college but I’ve kept up with it. This blog will further my fascination with all things HR. I hope to grow my knowledge of the area through thoughtful writings and spirited feedback. I will attempt to have a fairly routine style so anyone reading can come to expect certain segments. Please excuse my incorrect grammar and occasional misspelling.

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