The latest Gallup quarterly poll of small business owners shows that optimism has dropped to an index reading of 17 in July, down from 23 in April. A reading above zero indicates optimism. The Wells Fargo/Gallup Small Business Index hit a low of -28 in mid-2010.
Small business owners rate their future expectations at 18, down from 24 in April and 21 in January, the lowest level yet for 2012. Business owners expecting their financial situation to be very good or good over the next 12 months declined to 59% from 66% in April. The percentage expecting a revenue increase also fell, from 49% in April to 43% in July.
When asked about current operating conditions, the index reading remained essentially neutral at -1.
The feeling among business owners is much the same as the Gallup index we noted earlier today on consumers’ levels of economic confidence. Gallups sums it up:
Small-business-owner optimism is essential to U.S. economic growth and job creation. But it is hard to see how owners can become significantly more optimistic until jobs conditions improve substantially, consumers begin to exhibit sustained, increased economic confidence, and consumer spending increases.
Paul Ausick
Sponsored: Want to Retire Early? Here’s a Great First Step
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
