More than a third of small businesses nationally fear the economy could slide back into recession, according to a new survey of owners released on the eve of the Federal Reserve’s decision Thursday on whether to pump more money into the economy.
The National Small Business Association (NSBA) said just 11 percent of business owners it polled anticipate an economic expansion, versus 20 percent heading into 2012. Whereas just 14 percent expected a recessionary economy at that point, that figure has increased to 34 percent today.
Nearly 45 percent of small-business owners think the national economy is worse today than it was six months ago ”“ up from 31 percent in December 2011. And the number of small-business owners who are not confident about the future of their own business jumped from 25 percent to 40 percent today, the largest increase in nearly five years.
“While the dip in outlook is in line with cyclical drops in optimism mid-year, there”™s more to it,” said Todd McCracken, CEO of the Washington, D.C.-based NSBA, in a prepared statement. “The constant barrage of negative campaigning and near-complete failure of Washington to govern is having a broad, negative effect on America”™s small businesses.”
The Fed is expected to announce Thursday afternoon whether to initiate a new round of quantitative easing, dubbed QE3 by analysts and media.
