The latest survey data from the NFIB indicates a deep, and ongoing pessimism among small businesses.WSJ:
The National Federation of Independent Businesses said its Small Business Optimism Index dropped 3.2 points to 89.0 last month, more than erasing the modest 1.6-point gain it saw in May. The report, which was compiled by NFIB Chief Economist William Dunkelberg, described the decline as “a very disappointing outcome.”
In past periods following a recession, the NFIB index typically has risen back above 100 within a quarter or two of the trough in economic activity as measured by the National Bureau of Economic Research. That hasn’t been the case during this recovery. The index hasn’t broken above 93 in any month since January 2008 when the economy was in the early stages of recession, even though the NBER is expected to eventually date the beginning of the recovery in the third quarter of last year.
Speaking on CNBC, Dunkelberg says it’s all about the lack of business, and lack of consumer demand. It’s that simple.
Other issues: small businesses fear Washington, notably the sky-high deficit, the risk of a VAT.