10 | Business World Magazine |
March 2014
EXECUTIVE
SUMMARY
Small Business Confidence
Edges Up Slightly
MAIN STREET STILL CAUTIOUSABOUTTHE FUTURE
Small business optimism started the year
slightly up from December at 94.1 but well
below the pre-recession average of 100, ac-
cording to the National Federation of Inde-
pendent Business index. Owners did find a
reason to be more positive about their own
sales – prompting a seven-point jump in pos-
itive expectations – and plan more hiring,
with the strongest job creation plans since
2007. However, owners continue to find in-
ventories “too high” and sales and earnings
trends continued to deteriorate for more
owners. Overall, the Index is still just tread-
ing water.
“Employment starts 2014 over a million
below its peak in January 2008 and prospects
for a major recovery in jobs are not good,”
said Bill Dunkelberg, the NFIB’s chief econ-
omist. “NFIB labor market indicators have
recently seen a return to normal (but not
expansion) levels, encouraging in that rever-
sals are now less likely. The average increase
in workers per firm has also risen in recent
quarters, indicating new job creation. How-
ever, there are far fewer firms hiring workers
than there were in 2007 and many of those
still in existence have downsized.
“As the midterm elections heat up, eco-
