US small business owners' optimism increased in August despite disappointing labour report

Washington, Sept. 12 (ANI): Small business owners are feeling more optimistic for the first time in months, despite increasing uncertainty about the political environment.

According to the National Federation of Independent Business (NFIB), optimism gained 1.7 points in August to 92.9.

The optimism index managed to grow, despite a disappointing labour report last month.

However, the slight increase in optimism is not expected to last, according to William Dunkelberg, NFIB chief economist.

"Nothing happened in August to really improve their outlook-economic news was uninspiring and mixed. But it is possible that the uptick in their spirits will forecast of the election outcome and the chance for a favorable resolution of our fiscal dilemma," Dunkelberg said.

"If election odds start changing, owners (and consumers) may change their minds about spending, hiring and saving, but for now, expect little change in the current course of the economy," Fox News quoted Dunkelberg, as saying.

According to the report, more owners are expecting better business conditions in the next six months, with capital expenditures gaining six points in August to a net -2 percent.

Fourteen percent expected better business conditions, while 24 percent expect deterioration.

Seasonally unadjusted, 24 percent of business owners reported higher sales and 29 percent reported lower sales.

Job creation in the index also fell for the third month in a row, with the net change in employment, per-firm, settling at -0.5 percent.

Forty-nine percent of business owners attempted to hire, or did hire in the past three months.

According to the report, finally, credit markets stayed relatively stable for the month. Seven percent of businesses reported their credit needs were not all met (unchanged), while 31 percent reported their credit needs all met.

Fifty-three percent said 'explicitly' they did not want a loan and financing was the top business problem for only 3 percent of those surveyed.

The top three issues for businesses in the index were taxes (23%), unreasonable regulations and red tape (21%) and weak sales (20%), the report said. (ANI)