Monday, July 26, 2010

Small business owners remain pessimistic

Economic confidence drops again

Small business confidence fell for the second month in July as a higher percentage of small business owners rated the current economy as poor and see it only getting worse, according to the Discover Small Business Watch. The index dropped to 83 in July from 86.1 in June. It has been below 83 only once since the beginning of 2010.

July Confidence Indicators:

58 percent of small business owners rated the economy as poor, up from 51 percent in June, while 7 percent rated the economy as excellent or good, down from 12 percent in June.

57 percent of small business owners said the economy is getting worse, up from 51 percent in June; 27 percent think the economy is getting better; 14 percent think it is the same; and 3 percent are not sure.

45 percent of small business owners report economic conditions for their businesses were worse in July, up 2 percentage points from June; 30 percent of respondents said conditions were better; 22 percent reported conditions were the same; and 3 percent weren't sure.

75% of owners think another recession likely before full recovery; 75 percent of small business owners believe it is likely or highly likely that the economy will slip into another recession before it fully recovers, with 15 percent believing another recession is not very likely to happen and 10 percent feeling unsure

Record number of small business owners taking home less pay; 73 percent of small business owners surveyed also report current economic conditions have caused them to take home less money in July, up from 69 percent in July 2009 and 55 percent in February 2008, when the Watch first posed this question.

1 comment:

  1. This survey is troubling for the near term future if you ask me. It tells me that there really hasn't been any help from the stimulus. Which means all that money in the system could quickly avalanche upon us in bring about inflation.

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