Small Businesses Grow Pessimistic, Plan To Hire Less

small business owners survey ADP

NEW YORK -- Small business owners are growing more pessimistic.

A survey released Tuesday by the National Federation of Independent Business shows that owners became more pessimistic during September as employment and sales remained weak. The NFIB's index of owner optimism fell 0.1 point to 92.8.

The survey did have some bright spots. The number of owners who believe this is a good time to expand their companies rose 3 percentage points. And the number of owners who expect business conditions to improve in six months gained 4 points.

But the number of owner who plan to create jobs fell 3 points, while the number who plan to reduce their payrolls rose 2 points. More than a fifth of the survey's participants said weak sales are their biggest business problem.

More: Discouraged Workers: Ashamed, Invisible And An Enduring Statistic

The survey is in line with other small business readings that show owners are cautious. The payroll service company ADP said last week that small businesses slowed their pace of hiring during September. There have been mixed readings on how much owners are willing to borrow, but the conflicting signals do point to small companies being very careful about spending for hiring or expansion.

One reason why the NFIB survey showed that more owners expect business to improve: The presidential election will be decided and Congress is likely to have taken action on tax bills. That would remove some of the uncertainty that has contributed to owners' pessimism the past few months.

The NFIB questioned nearly 700 of its members as part of its survey.

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I refuse to do anything to benefit the current, communist Administration. My grandchildren's futures depend on it.

October 09 2012 at 8:28 PM Report abuse rate up rate down Reply

anyone that voted for Obama certainly does not care about small business owners and their problems. They only care about getting their share of the Obama money.

October 09 2012 at 7:15 PM Report abuse +2 rate up rate down Reply
Ol Bob

The Democrats' only concern is remaining in office, even if they have to destroy the country to do so.

October 09 2012 at 6:56 PM Report abuse +1 rate up rate down Reply

I just found out today that our local Office Max office supply closed its doors last week. Another one of the jobs Obama "created", I suppose. He doesn't tell the public about such as this -- only the jobs he "created," which is a bunch of hog wash. He must stay up at night trying to figure out a way to make people believe his lies. And the sad part is that many people do. Why in the world they can't see what he is doing to this country is a puzzlie to me.

October 09 2012 at 6:13 PM Report abuse +2 rate up rate down Reply

Small business owner here, since Obama took office, have lost half of my customers - Bookkeeper for small businesses, the half that I've lost have gone completely out of business... Thank you Obama. How about a "stupidity tax" for everyone that voted or will vote for Obama? They can redistribute it to the rest of us.

October 09 2012 at 6:03 PM Report abuse +1 rate up rate down Reply

Look on the bright side. I was just reading that undie sales are going up.That's just the good news we have all been waiting for.What's next? A few more pairs of socks being sold.?

October 09 2012 at 4:47 PM Report abuse rate up rate down Reply

Any small business with more than 50 employees. Gues what, with obamacare looming unless America wakes up, that company will lay off people to get the number under 50 so they don't have to cover them with health insurance...thanks obama

October 09 2012 at 4:44 PM Report abuse rate up rate down Reply

Forward LOL

October 09 2012 at 4:20 PM Report abuse rate up rate down Reply

I own a small business with 105 employees. I sure am NOT hiring more. I will HAVE TO fire some to pay for Obamacare. Thats not a political statement , its a fact. Taxes going up, costs going up, and Obamacare mean I have to lay off next year almost for sure. It sucks. I am trying . it isnt working.

October 09 2012 at 2:01 PM Report abuse +5 rate up rate down Reply
Fran Vanderham

Funny how the job rate fell to 7.8% in September after many small business owners aren't doing much hiring.

October 09 2012 at 12:47 PM Report abuse +3 rate up rate down Reply

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