Small businesses, “the backbone of the American economy” according to President Obama, have the blues according to the June survey of the National Federation of Independent Burisnesses.
According to the NFIB Chief Economist William Dunkelberg, the June Index of Small Business Optimism dove three points, “a significant decline, reversing “gains achieved earlier this year.”
Adds Dunkelberg, ““The economy has definitely slowed; job growth will be far short of that needed to reduce the unemployment rate unless lots of unemployed leave the labor force—no consolation. ”
Weak sales are a major concern of the NFIB members. “Consumer spending remains weak, especially on services.” Nor do those surveyed predict a near term turnaround for the economy. Says Dunkelberg, “Expectations this weak are not likely to generate job creation or inventory investment.”