Small Business Confidence Dips Slightly In June
By Mike Sachoff – Mon, 06/28/2010 – 5:10pm.
Cash flow issues lead to dip
Small business owners’ economic confidence leveled off in June, stopping a two-month rise, according to the Discover Small Business Watch.
The index fell slightly to 86.1 this month from 87.4 in May as rising concerns over temporary cash flow issues offset some improvement in the way small business owners see the climate for their own operations. Small business owners reporting temporary cash flow issues jumped to 51 percent in June, up from 45 percent in May and the highest since January. Forty-five percent of owners reported no cash flow issues, down from 48 percent in May; and 4 percent were unsure.
The Watch recorded a slight increase in confidence about how individual business owners were faring: 30 percent say economic conditions for their businesses are improving, up from 28 percent in May; 43 percent said conditions are getting worse in June, down from 44 percent in May; and 34 percent said things are staying the same, up from 24 percent in May.
“Many small business owners are working harder than ever to make payroll, pay their bills and keep their businesses running,” said Ryan Scully, director of Discover’s business credit card.
“Last month, more owners reported increasing their spending, which is good news. However, if sales are lagging this month, it’s possible that cash flow was more of an issue.”
In June, 29 percent of small business owners said they believe the overall economy is getting better, falling from 35 percent in May; 51 percent say the economy is getting worse, steady from the previous month; and 16 percent see the economy as the same, up from 12 percent in May.