Small business confidence dipped in 2nd quarter

Small business confidence dipped in 2nd quarter

Some small businesses are seeing lower revenues, and that has left small business owners less confident about the small business climate in the second quarter. In a quarterly survey sponsored by the National Federation of Independent Businesses, optimism fell to 64 in April, down from 71 in January the biggest decrease since November 2012. But the score was much higher than second-quarter 2014, when it was 47.

The survey asks small business owners about present circumstances and future expectations in six areas: Financial situation, cash flow, revenue, capital spending allocation, hiring and credit availability.

Forty-two percent of small business owners reported that company revenues increased in the past 12 months, down from 49 percent who said that in January. Still, the number of business reporting higher revenue is up from a year ago. A slight drop in credit expectations also contributed to the decline in optimism.

–Small business is basically in a holding pattern,” said NFIB spokesman Jack Mozloom.

Although franchised dealership organizations are typically –small businesses”, their situation is different because for several months the auto industry has been recovering faster than the overall economy.

Small businesses generally account for about half of gross domestic product.

Some small businesses are seeing lower revenues, and that has left small business owners less confident about the small business climate in the second quarter. In a quarterly survey sponsored by the National Federation of Independent Businesses, optimism fell to 64 in April, down from 71 in January the biggest decrease since November 2012. But the score was much higher than second-quarter 2014, when it was 47.

The survey asks small business owners about present circumstances and future expectations in six areas: Financial situation, cash flow, revenue, capital spending allocation, hiring and credit availability.

Forty-two percent of small business owners reported that company revenues increased in the past 12 months, down from 49 percent who said that in January. Still, the number of business reporting higher revenue is up from a year ago. A slight drop in credit expectations also contributed to the decline in optimism.

–Small business is basically in a holding pattern,” said NFIB spokesman Jack Mozloom.

Although franchised dealership organizations are typically –small businesses”, their situation is different because for several months the auto industry has been recovering faster than the overall economy.

Small businesses generally account for about half of gross domestic product.

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