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Small-business owners' overall optimism regarding their financial situation and future expectations about their finances has decreased to minus 4 on the Wells Fargo & Co. and Gallup Inc. Small Business Index, down 14 points from 10 in November, according to Wells Fargo. This is the first time the index has dropped below zero. The index surveys small-business owners on current and future perceptions of their financial situation, including cash flow, job hiring and credit availability. The "present situation" index score reached minus 5, down eight points from 3 in November, while the "future expectation" index score fell to 1 from 7 in November, according to San Francisco-based Wells Fargo. "These clearly are difficult times for many small businesses," says Scott Anderson, Wells Fargo senior economist. "More small businesses reported a worsening financial situation and cash flow, slowing revenue growth and less credit availability." The index reached its highest point of 114 in November 2006. Washington, D.C.-based Gallup conducted the telephone survey of 604 small-business owners nationwide between Jan. 22 and Feb. 2. The index can range from minus 400 (the most negative score possible) to 400 (the most positive score possible).
