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Small Business Watch
December 2008
Economic Confidence Improves Among Small Business Owners
After falling to its lowest measurement ever in November, economic confidence among small business owners rose slightly in December. The Discover Small Business Watch rose to 72.8 in December, up 5.3 points from November. The index was buoyed by increased optimism that their own business prospects are improving and an indication that more will increase spending on business development in the next six months.
December Highlights :
- 21 percent of small business owners believe that economic conditions for their businesses are getting better, up from 15 percent in November, which was the all-time low in the 29-month history of the Watch. Fifty-one percent feel the conditions are getting worse, which is down from 54 percent last month.
- 24 percent of owners say they plan to increase spending on business development over the next six months. This is an increase from 20 percent who said the same in November. Forty-seven percent say they are planning to decrease spending on business development compared to 51 percent last month.
- Cash flow issues decreased slightly in December as 42 percent of owners say they held off paying some bills in the past 90 days. Forty-four percent said the same in November.
- 63 percent rate the economy as poor, down 2 percent from November; only 6 percent rate the economy excellent or good, the second-lowest rating in this category in the history of the Watch.
- 12 percent feel the economy is getting better, which is the highest in this category since August 2008. The number of small business owners who think the U.S. economy is getting worse decreased by two percentage points to 70 percent in December; and 14 percent think it is staying the same.
