David Dodd 10:32 a.m., May 25
Small-Business Confidence Drops to Seven-Month Low
The optimism index of the National Federation of Independent Business (NFIB) fell to 91.9 in April, the lowest reading in seven months. The NFIB represents small businesses.
Hiring plans among small business owners declined in the month. Small companies want to see an increase in demand before hiring.
William Dunkelberg, economist for the NFIB, told Bloomberg TV today (May 10) that the April number is "a bummer." The index really should be at 105 or 110 in this phase of a recovery, he said. "Owners found no reason to be optimistic about the future."
This is an ill omen because the Obama administration is counting on small business to provide employment thrust.