Small Business Optimism Reaches Highest Level Since 2008
Written by Ken Gaebler
Small business optimism has reached its highest level since September of 2008, according to the National Federation of Independent Business.
The latest report from the National Federation of Independent Business shows that small business optimism has risen for the second straight month, and reached its highest level since September of 2008.
The NFIB's Small Business Optimism Index increased 1.6 points from April to a mark of 92.2. The index also shows an 11.2 point improvement compared with the its readings during the worst of the credit crisis last March.
Small business owners were also much more optimistic about the availability of credit compared with last month. Overall, 92 percent of entrepreneurs said that all of their credit needs were met or that they didn't want to take out money. However, the report said that the increase was due more to lack of demand than an increase in available credit.
The main reason entrepreneurs aren't expanding - according to the report - was a lack of sales. While more businesses reported higher sales over the last three months than in the past, entrepreneurs reported lower sales expectations over the coming three months.
Last week Bank of America announced good news for entrepreneurs, as it pledged to spend $10 billion on products and services from small businesses. It also urged other companies to take similar steps. Bank of America says it uses small businesses for a variety of products including software, cleaning and security.
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