Watching the Economy by Clint Burdett CMC® FIMC
Businesses Ready to Expand But Holding Back
March 16, 2013
March 2013 Report on Small Business Economic Conditions suggests
small businesses ready to expand but holding back.
The NFIB Small Business Optimism Index
increased 1.9 points in February to 90.8. ... The direction
of February's change is positive, but not indicative of a surge
in confidence among small-business owners. Of the ten
Index components, one fell, one remained unchanged and eight
improved. Most notably, the gains in capital spending
and inventory investment plans were large, but by historical
standards the levels remain very low.
"While the Fortune 500 are enjoying
record high earnings, Main Street earnings remain depressed. Far
more firms report sales down quarter over quarter than up.
Washington is manufacturing one crisis after another-the debt
ceiling, the fiscal cliff and the sequester. Spreading
fear and instability are certainly not a strategy to encourage
investment and entrepreneurship. Three-quarters of
small-business owners think that business conditions will be
the same or worse in six months. The Index gained
almost 2 points last month; that was good news. But, until
owners' forecast for the economy improves substantially, there
will be little boost to hiring and spending from the small
business half of the economy." -- NFIB chief economist Bill
You may not reprint this article for sale without my expressed written permission.
You may post or reprint this article to educate as long as you credit my work
and provide a link to www.clintburdett.com