Pessimism Over Economy Continues
Last week, we reported on the results from DISCOVER Small Business Watch survey which indicated small business confidence in the economy is still weak. The National Federation of Independent Businesses’ (NFIB) latest Small Business Optimism Index shows similar results.
The Index decreased 0.8 points from October to 88.3 in November. The index has been below 90 for six consecutive quarters, while after the 1980-82 recession the index stood below 90 in only one quarter. The report on these results indicated that very weak consumer spending was a major worry for NFIB survey respondents in November.
The job creation index fell by 2 points to -3%, although the index showed substantial improvement since May. In November, small business owners reported a decline in average employment per firm of 0.58 workers during the prior three months. NFIB Chief Economist William Dunkelberg said that "sales are not picking up, so survival requires continuous attention to costs – and labor costs loom large."
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