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Small Business Watch
October 2008
Small Business Economic Confidence Continues To Slide
The Discover Small Business Watch dropped for the second straight month as news of a congressional rescue plan failed to lift the spirits or expectations of the nation's 22 million small business owners. The index slipped 3.2 points in October to 71.4, the lowest confidence rating since the Watch was established in August 2006.
October Highlights :
- 64 percent rate the economy as poor, up from 57 percent in September and the highest rating in this category in the history of the Watch; 8 percent rate the economy excellent or good.
- 53 percent believe economic conditions for their businesses are getting worse, up from 51 percent in September and equaling the all-time high in the history of the Watch
- The number of small business owners who think the U.S. economy is getting worse rose one point to 74 percent in October; 9 percent feel the economy is getting better, up slightly from last month’s record low 7 percent.
- 38 percent of small business owners say they have experienced cash flow issues over the last 90 days, down from 42 percent in September.
- 23 percent plan to increase spending on business development over the next six months, down from 28 percent in September and equaling an all-time low in the Watch; 42 percent plan to decrease spending compared to 44 percent last month; and 33 percent anticipate making no changes, up from 26 percent in September.
