Small Biz Still in Recession

The National Federation of Independent Business confidence survey painted a bleak picture of economic conditions during September, as reported in this morning's Bloomberg Economic Brief. In summing up the report Bloomberg economist Richard Yamarone, said this: “Nothing matters more to the U.S. economic recovery efforts than the state of affairs among small businesses, which are responsible for half of gross domestic product. As long as this group struggles, so too will the broader macro-economy. While the National Bureau of Economic Research says the Great Recession ended in June 2009, it apparently forgot to tell small businesses” The headline Optimism Index inched up 0.2 points to 89.0 last month from August. According to the National Federation of Independent Business, the reading is, "stuck in the recession zone, and is typical of recessions over the last 35 years. Weak readings were registered in Earnings Trends (-33), Credit Conditions (-14), Real Sales Expectations (-3), and Business Conditions Expectations six months forward (-3.) The labor market was particularly disheartening, as the Job Hiring Plans Index fell four points to -3 in September, implying troubling times ahead in the sector that comprises 99.7 percent of all employer firms.