Small-Business Optimism Index Continues to Fall

According to June's NFIB Small-Business Optimism Index, "pessimism is on the rise among the nation's small-business owners." In the most recent monthly survey, respondents confirmed their views that a slowdown is coming in the second half of the year. Sales-growth expectations declined dramatically. In addition, weaker job-creation plans, declining inventory purchases and fading expansion hopes peeled 1.8 points off the index, which settled at 96.7 (1986=100) for the month. "Although June's sales, profit gains capital spending were solid as May's, that month wasn't very strong," said NFIB Chief Economist William Dunkelberg. "Taking a realistic view of the easing economy, owners are scaling back plans to spend and hire."