Survey: Small business owner optimism dips
Small business owners’ confidence in the economy has hit a five-year low, according to the Wells Fargo/Gallup Small Business Index (Index) survey conducted in April.
The index score fell to 48, the lowest level reported since the survey started in August 2003, when the score was 69. The results mark a 35-point drop from the previous survey in January 2008 and a 66-point drop from the Index’s highest score of 114 in December 2006.
"The nearly 50 percent drop in the index clearly reflects the intensified financial pressures small business owners have felt over the last three months," said Scott Anderson, Wells Fargo senior economist cash advance online payday loan. "The decline in both the present situation and future expectations components doesn’t bode well for a swift recovery in small business conditions. However, as consumers begin to receive — and spend — their economic stimulus checks, this should soon begin easing the blow to small businesses in the third quarter of this year."
The Index score is compiled from small business owners’ views on their financial situation, cash flow, revenues, capital allocation, job hiring and credit availability.