Small business owner optimism at five-year low

Small business owner optimism continues on a five-quarter decline, according to the recent Wells Fargo/Gallup Small Business Index survey.

The Index score dropped to 48, the lowest level reported since the survey’s inception in August 2003, when the score was 69.

The Index score is the sum of both current and future expectations of small business owners for six key measures: financial situation, cash flow, revenues, capital allocation, job hiring, and credit availability.

Small business owners’ future expectations for the next 12 months fell sharply to 30, a 15-point drop from the previous quarter. Small business owners’ ratings of their current situation dropped 20 points from January to 18. While each of the six key measures in the Index continued to reflect a drop from the previous quarter, the most significant changes were found in small business owners’ present revenue situation and future expectations for cash flow and financial situation.