Small Business Optimism Index at Near Record Level

Small Business Optimism Index continued record streak in May

Small Business Optimism Continues Remarkable Surge

Small business confidence shot up to near record levels last November and is still flying high, according to the latest National Federation of Independent Business (NFIB) Index of Small Business Optimism.

“The remarkable surge in optimism that began last year right after the election shows no signs of slowing down” said NFIB President and CEO Juanita Duggan. “Small business owners are highly encouraged by the President’s regulatory reform agenda, and they remain optimistic there will be tax reform and health-care reform. This is a policy-driven phenomenon.”

The Index for May matched its strong performance in April of 104.5. That means the Index has been at a historically high level for six straight months. Five of the Index components posted a gain, four declined, and one remained unchanged.

NFIB Small Business Economic Trends Report, May 2017

NFIB Small Business Economic Trends Page

USA Small Business Outlook Retreats As Election Looms

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U.S. Small Business Outlook Retreats As Election Looms

PNC Survey Findings Show Decline in Hiring, Expectations; Majority Say They Are Not 'Better Off'

PITTSBURGH, Oct. 4, 2012 /PRNewswire/ -- A soft outlook on sales has only one in four small business owners planning to hire in the next six months as business optimism retreats ahead of next month's presidential election, according to the latest findings of the PNC Economic Outlook.

The fall findings of PNC's biannual survey, which began in 2003, show a decline in owners' expectations for sales and profits as the lackluster economic recovery struggles to gain steam. Business owners have less optimism about their local economies and are significantly more negative on the national level compared to last spring. Despite this dip in sentiment, owners remain more upbeat than this time last year, when optimism hit near-historic lows.

"The pace of the U.S. economic and jobs recovery remains disappointing," said Stuart Hoffman, chief economist at PNC. "Despite significant headwinds like the deepening recession in Europe and impending 'fiscal cliff,' the hiring plans and business outlook reflected in this survey are just enough to keep the modest recovery persistent into 2013."

Are You Better Off?
One out of two (48 percent) owners say they are currently "worse off" compared to 2007, when the recession officially began, while only 26 percent claim they are "better off." When asked how they have adapted to survive in the new economic environment, more than two-fifths (42 percent) said they seek greater productivity or efficiency from their employees, and one-third (33 percent) have reduced or consolidated their operations since 2007.

Highlights: Sales, Profits and Hiring Take a Hit
 The survey, which gauges the mood and sentiment of small and medium sized business owners, found that only 46 percent expect their sales to increase in the next six months, significantly lower than last spring (58 percent). Profits are also expected to be lower, as only 38 percent expect an increase compared to 43 percent in the spring. Only 23 percent expect to add new employees, lower than in spring (28 percent) but still higher than a year ago (20%).

Other findings about the next six months include:

* Optimism is Fading: Six in 10 (57 percent) are now pessimistic about the national economy over the next six months, up from just 43 percent in the spring. Seven out of 10 (69 percent) are pessimistic about the global economy over the same period.

* Capital Spending Declines: Only 58 percent plan to spend on capital investments in the next six months, down significantly from 70 percent last spring. Spending on technology equipment remains the top priority.

* Loan Demand Flattens: Less than one-fifth (19 percent) will probably or definitely take out a new loan or line of credit in the next six months, compared to 23 percent last spring. Nearly one in three (30 percent) have no current need for credit, a major increase from 13 percent last spring.

* House Prices Rebounding: In a dramatic turnaround from the past five years, two-fifths (37 percent) expect home prices in their local market to rise in the coming year, while only 13 percent expect them to drop. A year ago those numbers were almost exactly reversed (14 percent expected a rise, 32 percent expected a drop).

* Healthcare Hurts Hiring...: More than two-fifths (42 percent) believe the Supreme Court ruling to uphold the Affordable Care Act will negatively affect their hiring plans in the coming year.

* ... But More Federal Action Could Help: Nearly two-thirds (63 percent) think Federal action following the election will positively influence their hiring plans, with reduced regulations the top choice and reduced government spending a close second.”

The PNC Financial Services Group, Inc. (www.pnc.com) is one of the nation's largest diversified financial services organizations providing retail and business banking; residential mortgage banking; specialized services for corporations and government entities, including corporate banking, real estate finance and asset-based lending; wealth management and asset management. Follow @PNCNews on Twitter for breaking news and announcements from PNC.

Methodology
The PNC Economic Outlook survey was conducted between July 23 to September 10, 2012, by telephone within the United States among 1,697 owners or senior decision-makers of small and mid-sized businesses with annual revenues of $100,000 to $250 million. The results given in this release are based on interviews with 506 businesses nationally, while the remaining interviews were conducted among businesses within the states of Florida, Georgia, Illinois, Indiana, Michigan, New Jersey, North Carolina, Ohio and Pennsylvania. Sampling error for the national results is +/- 4.3 percent at the 95 percent confidence level. The survey was conducted by Artemis Strategy Group (www.ArtemisSG.com), a communications strategy research firm specializing in brand positioning and policy issues. The firm, headquartered in Washington D.C., provides communications research and consulting to a range of public and private sector clients.

U.S. Small Business Outlook Retreats As Election Looms

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Capital One Small Business Survey: Confidence Holding Steady

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Capital One Small Business Survey

Small businesses continue to show improvements, remain steady, but express concerns for remainder of the year, according to second quarter 2012 survey data.

MCLEAN, Va. - (BUSINESS WIRE) - August 21, 2012 - Small businesses across the country are reporting generally modest but steady improvement in their finances, according to Capital One’s second quarter 2012 Small Business Barometer, a quarterly survey of small businesses across the nation examining general economic indicators and small business perceptions of the economic environment, gauging current financial conditions and business projections for the next six months. Looking back over the past year, the survey results indicate that small businesses continue to show signs of improvement. Small businesses started the year off on more solid footing in the first quarter of 2012 and the initial gains over 2011 have remained consistent, even showing some improvement in the second quarter of the year. On the hiring front, the survey found a two-year high in the percentage of small businesses planning to add jobs over the next six month, with 37 percent reporting plans to hire.

The majority of small businesses report that their business financials have remained stable or improved, with 44 percent reporting improved financial position compared to one year ago. However, small business perceptions regarding local economic conditions remain relatively unchanged and, despite the improvement in company financials, the data shows small business owners are less optimistic about business prospects in the months ahead. The national business outlook indicates that concerns over sales and price margins, have diminished small business confidence in their prospects for the remainder of 2012.

“This quarter’s survey results suggest that business is generally holding steady for small businesses; the current economic environment and overall business performance continue to hold their own or improve, and while hiring is far short of pre-recession levels, we’re seeing small businesses making plans to hire new employees in numbers that are among the highest we’ve seen in the past two years,” said Jon Witter, President, Retail and Direct Banking at Capital One. “Though these are promising signs, as we look forward, we’re also seeing some hesitancy and concern about prospects for the remainder of the year, as well as a limited line of sight to growth – demonstrating small business owners are moving forward with continued caution and pragmatism as they consider their plans and projections for the coming months.”

Capital One Bank Quarterly Small Business Barometer Survey Finds Small Business Confidence Holding Steady

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U.S. Bank Small Business Survey: 71% Say USA in Recession

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US Bank Small Business Survey

U.S. Bank Releases Results of 2012 Small Business Annual Survey

Business improves though most small business owners still believe the economy is in recession

MINNEAPOLIS - (BUSINESS WIRE) - May. 30, 2012 - Small business owners' view of the economy may have improved in 2012, but 71 percent still believe the United States economy is in a recession according to results of the 2012 U.S. Bank Small Business Annual Survey. Closer to home, the survey found more small business owners consider the financial health of their company as "good" to "excellent." Sales volatility is less of a concern now than in years past, and the number one business issue on their minds in the 2012 election is healthcare reform.

Now in its third year, the U.S. Bank Small Business Annual Survey polled 3,220 small business owners with $10 million or less in annual revenues. Owners were surveyed between March and April 2012 in the 25 states where U.S. Bank provides small business banking services, primarily in the Midwest and Western United States. The questions centered on economic conditions, business conditions, business challenges, 2012 election issues, work/life balance and banking relationships.

"Small business owners are creating ways to succeed, despite lingering concerns about the economy," said Rick Hartnack, vice chairman of consumer and small business banking at U.S. Bank. "Business is rebounding, especially among businesses with at least $1 million in annual sales and five or more employees. For those businesses, prospects for growth are particularly strong, as are their plans to hire."

Business Conditions Improve, Economy Still a Concern

Overall, 69 percent of respondents said the financial health of their business was "good," "very good" or "excellent," up from 64 percent in 2011. This year, 29 percent said they saw revenue increase over last year, which is up slightly from 26 percent in 2011. Less than half expect to see revenue improve next year, however the numbers jump among businesses with at least $1 million in annual sales. For these larger businesses, 40 percent saw an increase in sales over 2011, 58 percent expect revenue to grow next year and 34 percent say they plan to hire in the next 12 months.

"Economic uncertainty" remains the number one concern cited among respondents, however "poor sales" - the second-biggest challenge for the past two years - is less of a concern in 2012 with only 12 percent citing sales as a challenge. Healthcare reform is a growing concern, with 60 percent saying they believe it will negatively impact their business, up from 57 percent in 2011 and 55 percent in 2010. States where small business owners are less concerned about healthcare reform than the national average include Washington, Oregon, California and Illinois.

Top Small Business Issues for the 2012 Election

The five top business issues on the minds of small business owners in the 2012 election are healthcare/Medicare, jobs and unemployment, taxes, the federal deficit/debt and Social Security. When asked which issues are more important this year versus the 2008 election, most said healthcare/Medicare, followed by the federal deficit/debt, jobs/unemployment, energy costs and taxes. When asked what they would do if they were the president of the United States for one day, small business owners said they would lower taxes, reduce regulations and tackle health insurance issues.

U.S. Bank Releases Results of 2012 Small Business Annual Survey

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Capital One Small Business Survey: Showing Signs of Recovery

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Capital One Small Business Survey

Small business owners are planning for the long term, with more plans to hire and more revenue toward business development and investments, according to first quarter 2012 survey data.

MCLEAN, Va. - (BUSINESS WIRE) - May. 24, 2012 - Small businesses are showing signs of recovery after a difficult year in 2011, according to the Capital One Small Business Barometer for the first quarter of 2012, released by Capital One Small Business today in conjunction with National Small Business Week. This quarterly survey of small businesses across the nation examines general economic indicators and small business perceptions of the economic environment, gauging current financial conditions and business projections for the following six months. Survey results for the fourth quarter of 2011 showed that small companies planned to take a deliberate and cautious approach to investments and hiring for 2012. First quarter 2012 results suggest this strategy has led to a strong start for small businesses this year, with many reporting increased liquidity and plans to increase spending on investments and growing their business.

Small business perceptions toward local economic conditions have improved significantly. Four out of five small businesses surveyed said their companies’ financial performance met expectations for the quarter. For the first time since the second quarter of 2011, the number of small businesses reporting better financial performance compared to a year ago is higher than those reporting that their financial performance is at the same level. The national business outlook indicates small businesses are upbeat about their current financial situation and improvement over 2011, but concerns over cash flow and the ability to acquire new customers are tempering their confidence about prospects for the remainder of 2012. Additionally, 15 percent of small businesses across the country currently have job openings that they are unable to fill.

"The latest survey results show some positive signs that more small businesses are beginning to focus on hiring, with the increase in the number of small businesses making plans to hire compared to the previous quarter at the highest level in over two years," said Jon Witter, President of Direct, Consumer and Small Business at Capital One. "It is an encouraging sign that many businesses are looking to make long-term investments, and we are optimistic this trend will continue in quarters to come."

Capital One Bank Quarterly Small Business Barometer Survey Reveals Small Businesses Are Looking Up

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