Survey: Small Businesses Growing More Pessimistic

The National Federation of Independent Businesses (NFIB) reported that for June, small businesses grew more pessimistic about their economic outlook in the face of weak sales and political uncertainty. The NFIB’s monthly survey of members showed the small business optimism index fell by 3.2 points in June, dipping to 89, after posting several months of gains.

“Seventy percent of the decline this month resulted from a deterioration in the outlook for business conditions and real sales gains,” the NFIB survey concluded. The report is based on 805 responses to a random survey of NFIB members.

“The performance of the economy is mediocre at best, given the extent of the decline over the past two years,” the NFIB survey concluded. “Pent-up demand should be immense, but it is not triggering a rapid pickup in economic activity.”

Very few small businesses plan to create new jobs, according to respondents. The survey showed that only 10% of firms plan new hiring, that is down 4 points from May, the NFIB said. About 8% of firms plan to reduce their workforce, up one point from the previous month, the group said.