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According to the National Federation of Independent Business, small business optimism has dropped to a three year low. In August, it dropped 2.2 points to 95.9. The lowest since March 2003.
Many businesses are reporting plans for capital expenditures have been put on hold. Also, more and more business are borrowing more regularly. The percentage of businesses that reported regular borrowing jumped 8 percentage points to 46 percent in August to a level not reached since the survey began in 1986. Finally, while some business are moving forward with plans to add staff, they are hitting a brick wall. They report more and more difficulty in finding qualified labor.
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