NATIONAL SURVEY OF SMALL BUSINESS MIRRORS GARDEN STATE SENTIMENT
TRENTON (July 12, 2016) – The Index of Small Business Optimism rose seven-tenths of a point in June to 94.5, a negligible increase showing no real enthusiasm across the nation for making capital outlays, increasing inventories, or expanding, according to the National Federation of Independent Business (NFIB). Meanwhile, in New Jersey, uncertainty reigns as another day ticks by without any indication about the future of the Transportation Trust Fund (TTF).
“Small businesses nationwide are essentially maintaining the status quo and experiencing little growth, those that have the unfortunate experience of operating in New Jersey certainly reflect the sentiment of their cohorts in other states,” said NFIB state director, Laurie Ehlbeck. “Thanks to the recent TTF debacle, uncertainty in New Jersey is even higher and the small business sector is unable to have high expectations that a solution will be worked out in their favor. Nationally, pro
prospects for economic growth are cloudy at best and in a state considering an overwhelming gas tax increase like ours, they are even worse.”
At 94.5, the Index remains well below the 42-year average of 98. Four of the 10 Index components posted a gain, three declined, and three were unchanged. Owners are still reporting that they cannot find qualified workers and cite it as their third “Single Most Important Business Problem.”
The political climate continues to be the second most frequently cited reason for why owners across the country think the current period is a bad time to expand. Closer to home, NFIB members have been voicing their concerns over the funding of the transportation trust fund in large numbers.
“Not only have we had hundreds of members contact their Senators and Assembly members to voice their opposition to both versions of the bills to fund the TTF, but when surveyed, 92% or our respondents were opposed to any type of gas tax increase, regardless of the incentives that our elected officials are attempting to hang their hats on,” continued Ehlbeck. “The bottom line is that if lawmakers want to increase optimism here at home and across the country, they need to accept that raising taxes on small business owners is not the answer. Improvement begins when regulation is reduced and fiscal certainty is guaranteed.
NFIB’s monthly Small Business Economic Trends survey is based on a monthly survey of small businesses. The survey was conducted in May and reflects the response of 700 small businesses.
