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Tuesday, July 09, 2013

NFIB: Small Business Optimism Index declines in June

by Calculated Risk on 7/09/2013 08:19:00 AM

From the National Federation of Independent Business (NFIB): Small Business Optimism Drops in June, Ends 2 Months of Increases

Small-business optimism remained in tepid territory in June, as NFIB’s monthly economic Index dropped just under a point (0.9) and landed at 93.5 ...

Job creation plans rose 2 points to a net 7% planning to increase total employment, better, but still a weak reading.
Five percent of the owners reported that all their credit needs were not met, unchanged and the lowest reading since February 2008.
In a little sign of good news, only 18% of owners reported weak sales as the top problem (lack of demand).  During good times, small business owners usually complain about taxes and regulations - and those are now the top problems again.

Small Business Optimism Index Click on graph for larger image.

This graph shows the small business optimism index since 1986. The index decreased to 93.5 in June from 94.4 in May.   This is still low, but just below the post-recession high.

Note: Small businesses have a larger percentage of real estate and retail related companies than the overall economy.