Overview - small business optimism

Article Abstract:

The July 1997 Index of Small Business Optimism increased by 1.3 points to 103.7, an implication of a strong economy since the first quarter of 1997. The index reveals that spending decreased its pace much more than production and growth in GDP slowed from a revised 4.9% in the first quarter of 1997 to 2.2% in the second. The number of small firms with an increase in sales remained high while 7% of all firms increased their prices. Compensation gains are still high while growth in profits is maintained at a good level.

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Outlook

Article Abstract:

The Index of Small Business Optimism reveals that small businesses believe that significant economic growth for the six month period following Nov. 1996 is unlikely. Small business owners also consider taxes, regulation, red tape and labor quality as their main problems. Owners also expressed concern over competition from large companies, weak demand, insurance availability and costs, labor costs credit availability and interest rates and inflation.

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Overview - Small Business Optimism

Article Abstract:

The Index of Small Business Optimism increased in Oct. 1996, by 0.8% to 101.3 from 100.5 during the previous month. The rise, together with strong employment levels and income growth, are expected to boost the index further during the 1996 holiday season. Improvements were also realized in the percentage of small businesses offering hard to fill positions, hiring plans, rate of price increase and capital spending plans.

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