Although the economy is far from a healthy recovery, there have been some mildly encouraging signs over the past few weeks. The housing market appears to be slowly pulling out of its slump and retail sales are beginning to perk up again. But unfortunately, things are getting worse where it counts most: small business.The Wall Street Journal reports that measurements of confidence of small business owners have just dropped for the second time:
The National Federation of Independent Business’s small-business optimism index dropped 0.2 point to 91.2 last month following a steep 3-point drop in June.The report in general was downbeat about business conditions among small businesses. The view isn’t surprising given the other weak data reported in economic sectors from manufacturing to retailing. […]Small business owners don’t expect business activity to improve much in the next six months. The subindex of expected business conditions rose 2 points to -8% last month, but the expected higher real sales subindex declined fell 1 point to -4%.
Revivals in the housing market and retail are nice, but small business is where the jobs will come from. Clearly, what we are doing now isnt working.