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Wells Fargo/Gallup Survey Shows Substantial Improvement in Small Business Confidence
Published on Dec 27, 2010
Read our article, 'Wells Fargo/Gallup Survey Shows Substantial Improvement in Small Business Confidence' at 'Time to Start Up,' the small business blog by BizFilings.
The Wells Fargo/Gallup Small Business Index shows that confidence among U.S. small business owners has improved significantly, marking the highest level since April of 2009.
Soaring 24 points to -4, the index marks a vast improvement over its historic low of -28 last July. However, although the index represents a substantial improvement and tends to predict coming economic conditions, it has a long ways to go before reaching pre-recession levels.
"The improvement in optimism among small business owners appears to be more than statistical noise," added Dr. Scott Anderson, Wells Fargo senior economist. "Better economic conditions including a strong lift in third quarter GDP - in particular new strength in consumer spending - are boosting small business owners' perceptions for increased cash flows and revenues over the next 12 months. This improved optimism bodes well for the overall economy."
In mid-2007, right before the collapse of the housing market that triggered the recession, the confidence index hovered around 113 point and then plummeted the following year.
However slight the improvement, it bodes as good news for entrepreneurs forming a company, who are seeking a wider availability of credit and lending opportunities.
The index also reflects similar results reported by a recent survey by the National Federation of Independent Business, which found confidence among small business owners to be the highest since December of 2007 - the month the recession began.