Close
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home IT Management
    • IT Management
    • Small Business

    Small Business Optimism Up Slightly in August: Report

    By
    Nathan Eddy
    -
    September 15, 2010
    Share
    Facebook
    Twitter
    Linkedin

      The Index of Small Business Optimism gained 0.7 points in August, rising to 88.8. Most of the improvement was accounted for by gains in expected real sales and expectations for business conditions six months out, the two components that lowered the Index in July, according to research from the National Federation of Independent Businesses.

      The Bureau of Labor Statistics reported 67,000 new private sector jobs in August, but 45,000 were from education and health care, which are heavily dependent on government spending, not exactly “Main Street” companies. Eleven percent (seasonally adjusted) reported unfilled job openings, up one point from July but historically very weak, the report’s authors noted. Over the next three months, eight percent said they plan to increase employment (down one point), and 13 percent plan to reduce their workforce (up three points), yielding a seasonally adjusted net 1 percent of owners planning to create new jobs, down one point from July but positive for the fourth time in the last 22 months.

      The net percent of all owners (seasonally adjusted) reporting higher nominal sales in the past three months was unchanged from July at a net negative 16 percent, 18 points better than June 2009 but indicative of very weak customer activity, the report noted. Small business owners continued to liquidate inventories and weak sales trends gave little reason to order new stock.

      “The Index has been below 93 every month since January 2008 (32 months), and below 90 for 25 of those months, all readings typical of a weak or recession-mired economy. Near the beginning of the recession in 2008, USA Inc. shareholders elected a new CEO and management team but unfortunately the change in leadership did nothing to curb the recession,” the report stated. “In fact, the economy only got worse while new policy tactics enacted by management made little sense in terms of dealing with the main problems. Now, the shareholders are more than restless and unnerved by what they see coming out of Washington.”

      A net negative 15 percent of all owners reported gains in inventories, four points better than July but still considered by the NFIB as “very weak.” The report noted that inventories had been built in the expansion to satisfy the spending of a consumer that was saving virtually nothing. “August 2010 is the 29th negative double digit month in a row and the 39th negative month in a row for inventory reductions,” authors William C. Dunkelberg and Holly Wade wrote. “Inventories at the -big’ firms may start to accumulate as orders from small firms (many of whom are the final interface with the consumer) weaken.”

      Reports of positive profit trends improved three points in August, registering a net negative 30 percentage points, 26 points worse than the best expansion reading reached in 2005. Dunkelberg and Wade noted the persistence of this imbalance is bad news for the small business community. “Profits are important for the support of capital spending and expansion. Not seasonally adjusted, 18 percent reported profits higher (unchanged), but 42 percent reported profits falling, a three point improvement from July,” they wrote. “Seasonally adjusted, a net 3 percent reported raising worker compensation, only five points better than February’s record low reading of negative 2 percent.”

      Nathan Eddy
      A graduate of Northwestern University's Medill School of Journalism, Nathan was perviously the editor of gaming industry newsletter FierceGameBiz and has written for various consumer and tech publications including Popular Mechanics, Popular Science, CRN, and The Times of London. Currently based in Berlin, he released his first documentary film, The Absent Column, in 2013.

      MOST POPULAR ARTICLES

      Big Data and Analytics

      Alteryx’s Suresh Vittal on the Democratization of...

      James Maguire - May 31, 2022 0
      I spoke with Suresh Vittal, Chief Product Officer at Alteryx, about the industry mega-shift toward making data analytics tools accessible to a company’s complete...
      Read more
      Cybersecurity

      Visa’s Michael Jabbara on Cybersecurity and Digital...

      James Maguire - May 17, 2022 0
      I spoke with Michael Jabbara, VP and Global Head of Fraud Services at Visa, about the cybersecurity technology used to ensure the safe transfer...
      Read more
      Big Data and Analytics

      GoodData CEO Roman Stanek on Business Intelligence...

      James Maguire - May 4, 2022 0
      I spoke with Roman Stanek, CEO of GoodData, about business intelligence, data as a service, and the frustration that many executives have with data...
      Read more
      Applications

      Cisco’s Thimaya Subaiya on Customer Experience in...

      James Maguire - May 10, 2022 0
      I spoke with Thimaya Subaiya, SVP and GM of Global Customer Experience at Cisco, about the factors that create good customer experience – and...
      Read more
      Cloud

      Yotascale CEO Asim Razzaq on Controlling Multicloud...

      James Maguire - May 5, 2022 0
      Asim Razzaq, CEO of Yotascale, provides guidance on understanding—and containing—the complex cost structure of multicloud computing. Among the topics we covered:  As you survey the...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2021 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×