Small Business Confidence Improved in January
The National Federation of Independent Business released their optimism index for January, reporting that overall confidence among small business owners in the United States rose to the highest level in sixteen months, up to 89.3 from 88 in December.
Thirty percent of respondents indicated that lagging sales remained a major concern. Confidence that things will get better in the future also dragged the index down a bit. Small businesses are not likely to see a major upswing in the next six months, nor are they likely to expand operations.
Nevertheless, sales prospects have increased and many business owners actually need to bulk up their inventories, even while anticipating scaling back in other areas.
President Obama's announced temporary increase in small business loans should help to ease some of these concerns, at least maintaining things are a current level and buoying the small business economy against further contraction.
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