Are you being optimistic or pessimistic about your business? What are some studies saying?
55% of entrepreneurs have an optimistic perspective about their short-term business prospects and 26 % said that business opportunities are growing, exposed the latest American Express OPEN® Small Business Monitor survey. But, 63 % believes that there isn’t an end to the worst of the recession yet.
On the other hand, a study by the National Federation of Independent Business’s Small Business Optimism Index reported that small business optimism rose to 88.8 this month, but unfortunately results weren’t too good.
In this sense, four of the ten component indices had increases, two didn’t change and four went down. The main results of the study are as follow:
1. Labor markets: 7% of the small businesses increased employment, but 23% reduced it. In addition, 7% of the owners are planning to create new jobs.
2. Capital spending: Intentions of making capital expenditures over the next few months rose two points.
3. Inventories and sales: More small businesses plan more inventory decrements than investments. Quarterly reports on sales said that 41 % of sales declined, but other 21% had gains. Approximately 25% of owners expect real sales volumes to grow in the coming months.
4. Inflation: 10% of the owners expose raising average selling prices, but 32% reported price reductions. Plans to increase prices also fell two points.
5. Credit markets: 9% of small business’ owners report higher interest rates on their most recent loan, but only 3% had lower rates.
Even though improvements were far less than expected, the good news is the Index didn’t descend this month.
Source:
US ECON: NFIB Says Business Optimism Rises To 88.8
NFIB Small Business Economic Trends
