Economic confidence among small business owners improved in February for the first time since July of last year. Forty-one percent of owners said current economic conditions have forced them to reduce business spending, and 67% report having to curtail personal spending. Another 55% have been forced to reduce the amount of money they take out of their businesses, according to the "Discover Small Business Watch" index. The index rose in February to 90.9, a 4.6-point increase over January's 86.3. About 34% of small business owners said they see economic conditions for their businesses getting better over the next six months, up from 31% who felt the same in January. One-third said they planned to increase spending on business development activities over the next six months, an increase over 28% in January who planned to do the same. Two-thirds of small business owners feel that economic conditions in the U.S. are getting worse, a decrease from 74% who felt this way in January. More than 40% said they have experienced cash flow issues over the last 90 days, a slight decrease from 44% in January, but consistent with the past several months.
| Discover Small Business Watch | |
|---|---|
| Feb 07: | 113.4 |
| Mar 07: | 117.7 |
| Apr 07: | 110.3 |
| May 07: | 110.0 |
| Jun 07: | 102.5 |
| Jul 07: | 107.3 |
| Aug 07: | 102.4 |
| Sep 07: | 99.2 |
| Oct 07: | 96.8 |
| Nov 07: | 93.2 |
| Dec 07: | 92.7 |
| Jan 08: | 86.3 |
| Feb 08: | 90.9 |
| Source: Discover Business Card | |