Small Business Optimism Plummets -- Gallup

Banking, finance, and taxes

Published: November 30, 2012 10:16 am

Last Updated: November 30, 2012 10:23 am

The Wells Fargo/Gallup small business index dropped from a July reading of 17 to a November score of -11, Gallup reported this morning. The index surveys small business owners’ ratings of current conditions for their businesses and their expectations for the next 12 months.

The index climbed to a high of of 23 in April 2012 but Gallup notes that prior to 2008, readings typically topped 100.

While owners’ view of current conditions fell 9 points, to -10, which suggests that business owners have become slightly pessimistic. The bigger change came in expectations, which fell from 18 in July to -1 in November. Gallup noted that 21% of small business owners expect job numbers to decrease, and one in three business owners expects capital spending to drop in the next 12 months.

Gallup summed up the latest survey:

Overall, the Wells Fargo/Gallup Small Business Index survey results suggest the U.S. economy is extremely fragile — and possibly susceptible to another recession. Policymakers need to keep this acute fragility in mind as Washington struggles to avert the “fiscal cliff.”

Paul Ausick

Are You Still Paying With a Debit Card?

The average American spends $17,274 on debit cards a year, and it’s a HUGE mistake. First, debit cards don’t have the same fraud protections as credit cards. Once your money is gone, it’s gone. But more importantly you can actually get something back from this spending every time you swipe.

Issuers are handing out wild bonuses right now. With some you can earn up to 5% back on every purchase. That’s like getting a 5% discount on everything you buy!

Our top pick is kind of hard to imagine. Not only does it pay up to 5% back, it also includes a $200 cash back reward in the first six months, a 0% intro APR, and…. $0 annual fee. It’s quite literally free money for any one that uses a card regularly. Click here to learn more!

Flywheel Publishing has partnered with CardRatings to provide coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.