Small Business Owners Remain Pessimistic

Small business owners remain pessimistic, with the small business optimism index dipping another 0.3 points in March to 92.6, surpassing February's two year low and remaining well below the 42-year average of 98. Four of the 10 component indices posted a gain and six posted declines. Among the most optimistic parts of the index, plans to increase capital outlays rose to remain at very solid levels while the job openings were a little less hard to fill in March, but still very hard. But earnings trends continued turning from bad to worse in March, and though small business owners were more optimistic than in February in their expectations that the economy will improve, this component of the index is still in deep pessimistic territory at a net negative 17 percent.

Recent History Of This Indicator:
The small business optimism index dropped noticeably in February and a solid rebound is expected for March, at a consensus 93.6 for what would be a 7 tenths gain. February was held down by slowing in labor market components with sales expectations and earnings trends very weak. Softness in this report has underscored the moderate degree of economic growth.