Small-business owners’ confidence rose slightly in September, halting a three-month decline as more business owners’ cash flow improved, according to new survey data Discover Financial Services released Sept. 27.
The Discover Small Business Watch this month rose to 73.8 from 73 after falling 14.4 points since last May.
The Business Watch is a monthly report measuring the relative economic conditions of 750 randomly selected small-business owners based on their responses to six questions. Its creators established a base index of 100 when the Watch began in August 2006.
“While the recession is technically over, large numbers of small-business owners say they won’t see true recovery for at least six more months,” Ryan Scully, Discover business card director, said in a statement.
A record 68% of small-business owners in September rated the economy as poor, up from 62% who did in August, while 26% said the economy is fair, 4% said it is good and 2% said it is excellent.
A record-low 16% of owners this month said they plan to increase spending, down from 17% who did in August, while a record 57% of owners said they plan to decrease spending this month, up from 52% in August.
Some 57% of respondents in September said the economy is getting worse, down from 62% who said so in August. And 46% of small-business owners reported having cash-flow issues in September, down from 53% who did in August.
Asked whether they needed a loan to expand their businesses, 71% said they did not, while 20% said they would need a loan and 9% were unsure.
On the question of whether a 100% tax break for capital investments would help them, 51% said it would not, 26% said it would, and 23% were unsure.
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