Small-Business Owners Still Generally Pessimistic

Washington, DC, Nov. 10, 2009--Small-business owners are expected to cut jobs instead of adding them over the next three months, according to the National Federation of Independent Business Index of Small Business Optimism.

The index edged up 0.3 of a point in October to a reading 89.1, but the index has been below 90 for six straight quarters. In the 1980-82 recession, by comparison, the index fell below 90 for only one quarter.

"The October gain was minor, so the good news is still less bad news," said William Dunkelberg, NFIB's chief economist, in a statement.

Four of the ten index components rose, while four declined and two were unchanged.

The main small-business index reached its lowest point in the current downturn in March, when it fell to 81.

Over the next three months, 16% (unchanged) of small-business owners surveyed said they plan to reduce jobs, while 9% (up two points) plan to add more workers.

Only 11% of owners believe business conditions will improve in the next six months, which is historically low, the federation said.