Small-business optimism on the wane

Small businesses are growing increasingly pessimistic about the state of the economy, an advocacy group reported Tuesday.

In its monthly index, the National Federation of Independent Business found that small-business optimism was at its lowest point in nearly a year, with smaller companies concerned about both sales and business conditions.

Bill Dunkelberg, the small-business advocate’s chief economist, said the recent showdown over the debt ceiling and Standard & Poor’s unprecedented downgrade of the U.S. were clearly playing a role in small business’ outlook.

“Perhaps we might begin referring to the ‘Small-Business Pessimism Index’ from now on,” Dunkelberg said in a statement.

NFIB reported Tuesday that the July optimism index fell to 89.9, down 0.9 points from June. In all, the index has fallen five consecutive months after reaching 94.5 in February, its highest point since late 2007.

According to the index, which surveyed 1,817 NFIB members, 2 percent of small-business owners currently plan to add new jobs.

The group also found that more small businesses are seeing their sales trend down than up. But, NFIB added, the figures for actual sales changes were actually at close to their highest point over the last three-plus years.

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