U.S. Small-Business Owners Pull Back Capital Spending
According to the Wells Fargo/Gallup Small Business Index, U.S. small business owners’ net capital spending intentions for the next 12 months plunged to -14 in November, the lowest level in more than two years.
This is down from net capital spending intentions of -1 in July and suggests the nation’s small-business owners are likely to pull back on their business investments even more, given their negative expectations for the next 12 months.
The -14 November score is based on 20% of small-business owners saying they expect to increase their capital spending over the next 12 months and 34% saying expecting to decrease their capital spending. The 20% “increase” reading is down from 23% in July and the lowest level since July 2010. The 34% “decrease” reading is the highest since July 2010. In the current survey, 45% of owners expect no change in their capital spending.
To read the Gallup news release, click here.