Small Business Confidence Tumbles

 

Doubting market conditions are improving, small-business owners were far less confident about the economy in June, according to Discover.

In survey of 1,000 small-business owners nationwide, only 34 percent said they felt conditions for their business were getting better, compared to 43 percent in May, while just 38 percent described the economy as "excellent" or "good," down from 45 percent.

As a result, more owners said they expected to cut back on spending in the months ahead, the survey found.

Overall, Discover's monthly small-business confidence index dropped seven points to 102.5, its lowest level since being launched in August 2006.

On the upside, cash-flow concerns reported by about half of the owners surveyed last month remained steady in June. An uninterrupted cash flow suggests market conditions aren't getting any worse, according to Sastry Rachakonda, the director of Discover's small-business credit card.

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