Small businesses in America were not feeling that confident about the health of the economy in August or about their own financial situations. While small business confidence was up for August over July, it wasn’t by all that much. The survey of American small business is taken every month by the National Federation of Independent Business.
June was an extremely pessimistic month for American small business according to the The Wall Street Journal. Optimism, according to the NFIB research, roared back in July but stayed relatively stable in August. The National Federation of Independent Business’ small business optimism index was at 95.4 for July and August registered a small uptick in confidence to 95.9.
The research was compiled by the NFIB interviewing 656 small business owners throughout the whole country. They didn’t seem to be affected by the current turmoil on Wall Street or seem all that much concerned with exports to China slowing up a bit. These things were on the horizon, according to the NFIB. Interviews were made prior to the stock market instability and recent reports from China showing concern for their slowing economy.
Job openings and earnings were up somewhat over previous months which may have caused some of the steady optimism among American small business. The NFIB’s labor index showed that the job market is opening up somewhat despite the pessimism from the Labor Department’s unemployment stats for August.
Business owners seemed fairly confident that sales will remain steady but do not consider this an opportune time to expand their businesses in any way. Too much volatility out there for them to begin any expansion plans which doesn’t seem to bode well for the future job market.
Business owners were rather gloomy with regard to their expectations for the next six months. They were not willing to commit to raising prices across the board. Most have held steady. There was a small percentage who raised prices while a similar small percentage lowered their prices. No one seems all that optimistic with regard to attaining additional capital for expansion or to increase inventories in the coming months.