Friday, October 12, 2012

Small Business Optimism Drops, Joe says malarky!

Posted by CotoBlogzz

Rancho Santa Margarita, CA  –  According to National Federation of Independent Business (NFIB) September was another month of low expectations and pessimism for the small-business community, with the NFIB Small Business Optimism Index losing 0.1 points and falling to 92.8. The recession-level reading was pulled down by a deterioration in labor market indicators, with job creation plans plunging 6 points, job openings falling one point and more firms reporting decreases in employment than those reporting increases in employment. Since the commencement of NFIB’s monthly surveys in 1986,  the Index has been below 93.0 a total of 56 times; 32 of which have occurred since the recovery began in June 2009.

If  you watched the Vice-presidential debate last night, Joe Biden might refer to the NFIB's study as  "malakry"

However,  NFIB chief economist William Dunkelberg said about the elections:  “Everyone is waiting to see what happens, especially small-business owners who have a lot at stake in the outcome—which could mean higher marginal tax rates and more deficits, OR lower marginal tax rates and less government. Small-business owners are reporting that the political climate is a reason not to expand—second only to the economy, which is only keeping up with population growth. And so, in the meantime, owners are in maintenance mode; spending only where necessary and not hiring, expanding or ordering more inventories until the future becomes more ‘certain.’”

Some other highlights of  NFIB's September’s Optimism Index include:

•    Capital Expenditures: Small-business owners are still in “maintenance mode,” with the frequency of reported capital outlays over the past six months falling 4 points to 51 percent.

•    Sales: Weak sales continue to be an albatross for the small-business community.

•    Job Creation: Job creation plans showed that small-business owners created fewer jobs in September than in the two previous months.

As Joe Biden might say, who are you going to believe the malarky in the NFIB's study,  or crazy uncle Joe?

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