Source: Wells Fargo Securities Economics Group
Economic Worries Exceed Day-to-Day Concerns
- While the overall Small Business Optimism index rose just
0.5 points in December to its second lowest reading since
March 2010, businesses appear to be seeing at least some
modest improvement in their day-to-day operations.
- There were slight increases in a number of the index
components, including plans to make capital outlays, retail
sales expectations and earnings.
Fiscal Cliff Resolution Is Not Enough to Assuage Fears
- Taxes are the number one concern facing firms, followed by poor
sales and regulations. Frustration about taxes and regulations
will likely continue to restrain hiring and investment.
- The recent resolution of the fiscal cliff may have decreased some
uncertainty, but with the budget, sequester and debt ceiling all
on the table in March, substantial improvement in small
business sentiment may prove illusory for the next few months.