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Small Businesses Optimistic of Greater Profits
Published on Mar 31, 2011
Read 'Small Businesses Optimistic of Greater Profits' at 'Time to Start Up,' the small business blog by BizFilings.
Entrepreneurs forming a company may be more optimistic about sales prospects in coming months, according to new data released by PNC.
The financial services giant reported Thursday that 48 percent of small businesses are anticipating higher sales figures over the next six months - up from 42 percent last fall. Additionally, 37 percent of respondents expect greater profits over the same period, compared to 31 percent the last time the survey was conducted.
But there were a few less-than-optimistic points, as concerns over rising oil and energy prices continue to mount. According to the report, 72 percent of respondents believe a rise in energy prices will negatively impact their businesses, and as turmoil in the Middle East and North Africa continues, oil prices are expected to rise or remain level.
"The recovery light hasn't turned green, but it's a lighter shade of yellow," said Stuart Hoffman, chief economist for PNC. "The survey results support our view that the half-speed recovery that began in July 2009 is transitioning into a self-sustaining economic expansion for 2011-2012."
The release is also somewhat marred by a Confidence Board report released this week, which found consumer confidence fell to a three-month low in March on rising commodity prices.
What's the current state of your "optimism meter?" Are you anticipating higher sales figures over the next six months?