"Future expectations are the same as they were six months ago, suggesting little, if any, softening in small business conditions over the next twelve months," said Dr. Scott Anderson, senior economist at Wells Fargo. "At the same time, the drop in energy prices and interest rates since July has helped revive current conditions for small businesses."
According to the Index results, an increasing number of small business owners reported slight increases in revenues and revenue expectations over the next 12 months, while cash flow, capital spending, and hiring remained constant. The majority of small business owners - 94 percent - continue to feel successful in business, while 92 percent indicated they are satisfied being small business owners.
"Our team talks to small business owners every day, and what we hear from them is that they are very optimistic about their future," said Rebecca Macieira-Kaufmann, executive vice president and head of Wells Fargo's Small Business segment. "This is evident by our double-digit growth in small business loans from the prior year. Our customers are investing in their future and this bodes well for the overall economy," she added.
About the Small Business Index
Since the third quarter of 2003, the quarterly Wells Fargo/Gallup Small Business Index has surveyed small business owners on their perceptions of current conditions and future expectations relating to financial situation, revenues, cash flow, capital spending, number of jobs and credit availability. Results are based on telephone interviews with approximately 600 small business owners nationwide conducted September 27, 2006 through October 10, 2006. The margin of sampling error is +/- 4 percentage points.
