Small Business owners are getting more optimistic about the economy

I wouldn’t exactly say this is a cause to celebrate, but any increased optimism in this economy is good. And that’s precisely what small businesses are experiencing right now.

Small-business owners showed more confidence in the economy this month as a Discover Financial Service survey posted its biggest one-month gain since April.

The four-year-old monthly index rose to 84.2 in October, up 10.4 points from September. In August, it fell to 73, the lowest point in 1 1/2 years.

In the latest poll, 28% of small-business owners surveyed said they expect economic conditions for their businesses to improve in the next six months, up from 20% last month. That figure reached 30% earlier this year before sliding. The portion who said conditions will worsen was 43% this month, down from 55% in August and September.

This month, 31% of respondents said the overall economy is getting better, up from 26% in September and the highest level since May. The portion who said the economy is getting worse, 48%, was the smallest reading since February.

Of those surveyed, 9% said they are hiring, up from 6% in the past two months and the highest percentage since June. About 15% said they are laying off workers, up from 12% last month but down from 20% in August.

Regarding plans to spend on business development, 22% plan to increase spending, up from 16% last month, while 46% plan to decrease spending, down from 57% in September.

Discover’s survey polled 750 owners of businesses employing fewer than five people.

So what does this all mean? That things are moving slowly, but they seem to be headed in the right direction.

[Wall Street Journal]


One Response to Small Business owners are getting more optimistic about the economy

  1. Pingback: Small Businesses Seem To Be Pleased By The Recent Election Results « Buyful Blog

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