Here is what the survey revealed regarding small business owners’ outlook for the next six months:

• Better sales and profits: One likely key driver of the cautious optimism is improving sales expectations, as four in 10 expect sales to increase compared to 26 percent in the spring. One out of three expects profits to rise compared to 21 percent in the spring.
• Holding down labor costs: There has only been a slight change, however, in expectation for full-time employees.
• As was the case in the spring, most (64 percent) expect their number of full-time employees to remain the same compared to 65 percent in the spring.
• Only 17 percent foresee hiring compared to 12 percent last spring.
• More than half are taking actions to manage labor costs led by reductions in employees’ hours and temporary layoffs.
• Lack of investments: Capital spending plans remain weak. About half (52 percent) have no plans for capital spending compared to 43 percent last spring. Pricing power short-circuited: Only 22 percent, similar to the 19 percent last spring, plan to raise prices since few think market conditions will allow a price hike.

Overall numbers small business owners seem to be cautiously optimistic that the economy is on an upswing. The survey still shows that these same small business owners think there is a long way to go before they become to optimistic about the future.

You can find more small business services and information at the PNC website.

Post from: EveryJoe

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