The outlook for the U.S. economy from the nation’s small business owners has dimmed in the second quarter, reversing two previous quarters of rising optimism, the latest Wells Fargo/Gallup poll says.
The survey conducted from April 4-8 revealed a decline in owner optimism from first quarter levels, officials said.
The newest index score dropped 12 points from last quarter and now sits at zero, indicating that small business owners, as a group, are neutral — neither optimistic nor pessimistic — about their companies’ situations, said Wells Fargo Bank senior economist Scott Anderson.
Credit availability concerns remain unchanged with about one-third reporting that obtaining credit would be somewhat or very difficult, officials said. Fewer business owners demonstrate confidence in their financial situation, revenues and cash flow over the next 12 months.
“Weaker U.S. consumer spending in the first quarter, along with a spike in energy prices, is likely behind much of the slide in small business optimism since January,” Anderson said. “On the bright side, for the second quarter, optimism remains above the negative territory we experienced throughout 2009 and 2010.”
