Tuesday, July 10, 2012

NFIB: Small Business Optimism Index declines in June

by Bill McBride on 7/10/2012 08:22:00 AM

From the National Federation of Independent Business (NFIB): June Small-Business Optimism Lowest Since October 2011

In a disappointing reversal of several months of slow but positive growth, June’s Index of Small Business Optimism dove three points, falling to 91.4. The decline is significant, and relinquished the gains achieved earlier this year. Only one of the ten Index components improved; labor market indicators and spending plans for capital equipment and inventories accounted for about 40 percent of the decline.
...
Nearly one-quarter of owners cite weak sales as their most important business problem (23 percent) [up from 20 percent in May].
Note: Small businesses have a larger percentage of real estate and retail related companies than the overall economy.

Small Business Optimism Index Click on graph for larger image.

This graph shows the small business optimism index since 1986. The index decreased to 91.4 in June from 94.4 in May.

This index remains low, and once again, lack of demand is the biggest problem for small businesses. (In the survey, the "single most important problem" was "poor sales".

Last 10 Posts