Small business optimism takes a dive in March |
Written by David Horn
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Tuesday, 10 April 2012 11:07 |
(RALEIGH) -- After six months of gains, NFIB's Small Business Optimism Index fell by almost 2 points in March. Gregg Thompson, state director of NFIB/North Carolina said it is a clear indication that a lot of small businesses are still worried about where the economy is heading.
After a promising start to the year, nine of 10 national index components dropped last month. Hiring plans and expected real sales growth each dropped significantly, in spite of small business owners reporting the largest increase in new jobs in a year.
"This really is a case of March coming in like a lion and going out like a lamb," said Thompson. He added that the national trends are being reflected in North Carolina.
"The mood of owners is subdued," said NFIB Chief Economist Bill Dunkelberg. "They just can't seem to shake off the uncertainties out there."
The March survey results ended what appeared to be steady but slow trend of improvement for the small-business sector of the economy. The percent of owners reporting inflation as their top concern is now at nine percent, an increase from six percent in January. Reports of increases in average selling prices are also rising.
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