Small Business Optimism Rises in August, But Sales Cause Anxieties
Optimism rises, but much stays the same in regards to small business owners outlook.
NFIB small business optimism readings from August reported an increase of 0.4 points, putting the index at 96.1 points, bringing it to the second strongest reading since October 2007. Despite this, small business owners still report general uneasiness about the next six months, with the majority predicting worsened business conditions as opposed to improvement. Overall, despite a trend of overall increase, small business optimism has been slow to recover and really only has made modest gains. According to NFIB Chief Economist William Dunkelberg, weak consumer spending is one of the reasons behind the anxiety small businesses feel regarding their sales numbers, with low consumer sentiment and a lack of growth in terms of incomes preventing meaningful increases in consumer spending. This months report was summed up as basically “more of the same”, not bad news signaling a backslide into another recession, but not much good news either.
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