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Small Business Watch
June 2009
Small Business Confidence Rises as Cash Flow Issues Decline
Economic confidence among small business owners rose slightly in June as cash flow concerns abated and the mood on the economy held steady. The monthly index rose to 80.9, up from 78.1 in May.
June Highlights :
- 42 percent of small business owners say they have experienced temporary cash flow issues in the past 90 days, down from May's record high of 49 percent.
- 26 percent believe economic conditions are improving, up from 23 percent in May, while 57 percent believe conditions are getting worse, which is unchanged from the previous month; 14 percent said the economy is staying the same, and 4 percent weren't sure.
- 59 percent of small business operators rate the economy as poor, down 1 percent from May, while 8 percent rate the economy as excellent or good, and 30 percent called it fair.
- 49 percent of owners see economic conditions for their businesses getting worse, up 1 percentage point from May; 25 percent see conditions improving, also up 1 percentage point; 22 percent say conditions are the same; and 4 percent weren't sure.
- 51 percent of small business owners say they plan to decrease spending on business development over the next six months, down from 53 percent in May; 22 percent plan to increase spending, and 24 percent are not planning any spending changes.
