Small Business Optimism Declines

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Description: The National Federation of Independent Business Index of Small Business Optimism lost 3.2 points in June, falling to 89.0 after posting modest gains for several months. The Index has been below 93 every month since January 2008 (30 months), and below 90 for 23 of those months, all readings typical of a weak or recession-mired economy. Average employment growth per firm turned negative in April of 2007 and has remained negative for 10 of the 12 following quarterly readings, ending with a negative 18 in April. The net percent of all owners (seasonally adjusted) reporting higher nominal sales in the past three months lost four points, falling to a net-negative 15%, 19 points better than June 2009, but still far more firms are reporting negative sales trends quarter-to-quarter than positive.
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