suntimes
DECENT 
Weather Updates

Company owners more upbeat about post-election biz

Updated: October 3, 2012 6:29PM



NEW YORK — Small business owners are getting a little more optimistic about how their companies will do after the election, according to a survey released Tuesday.

The National Federation of Independent Business says owners it surveyed last month expect their companies’ sales and overall business conditions to pick up after the election and the end of the year.

That brighter outlook helped lift the NFIB’s small business optimism index by 1.7 point in August to 92.9. The NFIB, which lobbies on behalf of small business owners, compiled the index from its survey of 736 of its members.

Many business owners have refrained from hiring or expanding their companies not only because of the economy, but also because of the uncertainty over the presidential election.

The survey still shows that business owners have a generally dim view of the current economy, said William Dunkelberg, the NFIB’s chief economist. “There is too much uncertainty to make major financial commitments,” he said. Dunkelberg called the August index “another solid recession reading.”

But the number of owners who said they expect to create new jobs rose 5 percentage points from July to 10 percent. While the reading is low, the increase was significant.

The number of owners expecting their sales to improve also rose 5 percentage points to 1 percent, erasing a negative reading in July but still weak. The number of owners who expect business conditions to improve in six months rose 6 percentage points, although that reading remained negative at 2 percent.

Nearly a quarter of the owners, 24 percent, said they plan to make capital expenditures in the next three to six months, up 3 percentage points. Capital expenditures include purchases such as vehicles, equipment and real estate and also include improving or expanding buildings and facilities.



© 2014 Sun-Times Media, LLC. All rights reserved. This material may not be copied or distributed without permission. For more information about reprints and permissions, visit www.suntimesreprints.com. To order a reprint of this article, click here.