Small Business Economic Confidence Drops Sharply in May
After reaching its highest level in 14 months, the economic confidence among small business owners fell in May as owners reported cash flow concerns and expect to cut back on business development spending, according to the latest Discover Small Business Watch. The monthly index dropped more than 10 points to 78.1, down from 88.5 in April.
The Watch also recorded significant drops in the numbers of small business owners who think the overall economy is getting better, and number of owners who thought economic conditions were improving for their own businesses.
“We saw cash flow problems jump this month to their highest level in 2½ years, which is certainly not going to boost the optimism of a small business owner, especially in this economic climate,” said Ryan Scully, director of Discover's business credit card. “However, for the past three months we’ve been recording our highest confidence levels since summer of 2008, so all is not lost.”
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