Small Biz Watch: Small-business owners show confidence
Consumer confidence may be shaky these days, but small-business owners continue to be upbeat. The National Federation of Independent Business's small-business optimism index jumped nearly 4 points last month to 103.7.
"The economy is staying very strong," says NFIB Chief Economist William Dunkelberg. "And I wasn't really expecting any real impact to the macroeconomy due to the hurricanes, other than the energy price spike. But now prices are falling. Small businesses may not like [higher gas prices], but they don't seem to be a big deal to them as long as customers keep coming through the front door."
The index showed big increases in those surveyed who expect strong sales and better earnings. Also, more firms plan to create jobs now than at any other time since the dot-com boom. In fact, many business owners complain of being unable to find enough qualified workers. What, if anything, does Dunkelberg worry about? A big slowdown in the housing market, he says. If home prices stop surging, consumers may begin to save more and spend less. Though eventually those savings will translate into more capital available for business, the process "isn't instantaneous," Dunkelberg says. More on the NFIB report is available at www.nfib.com.
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