FT Alphaville has been focusing a lot on US economic issues this week as we count down to the big FOMC statement, and in that spirit we draw your attention to the new release of this month’s index of small business optimism from the National Federation of Independent Business.
On Monday, we explored whether the big decline in lending to small businesses was driven by forces of demand or supply, and the survey addresses the question directly:
Regular borrowing [by small businesses] gained three points in July as 32 percent reported accessing capital markets at least once a quarter, but still near record lows. A net 13 percent reported loans harder to get than in their last attempt, unchanged from June. However, overall 91 percent of the owners reported all their credit needs met or they did not want to borrow, up one point. Only 4 percent reported financing as their top business problem.
The rest of the survey wasn’t any more hopeful. The findings on employment, capital spending, earnings, and outlook were all down or remained near historic lows. Pricing (known to the rest of us as “inflation”) also remained low.
Related links:
Negative outlook for improved business conditions – NFIB
Bank lending to small business: supply vs demand – FT Alphaville