Optimism among U.S. small business owners declined more than expected in August amid recession fears, survey results from the National Federation of Independent Business showed.
The small-business optimism index slipped to 103.1 in August from 104.7 in July, lower than the Econoday consensus estimate of a reading of 103.5.
The Uncertainty Index climbed four points in August.
"[T]he manic predictions of recession are having a psychological effect and creating uncertainty for small business owners throughout the country," said Juanita Duggan, the federation's CEO. However, small businesses continue to invest and grow despite a gloomy outlook, she said.
A net 59% of owners reported capital spending in the month, up 2 percentage points on July, and 28% plan to make capital outlays in the next few months. Six percent of owners reported an increase in nominal sales while 17% expect higher real sales in the coming months, down from 22% in July.
Just 26% of owners said now is a good time to expand, unchanged from the prior month.
Employment growth picked up in August, but the net percent of businesses planning to add further jobs fell 1 point to 20% compared to July.
A net 12% of businesses anticipate the economy will improve, down 8 points against the previous survey.
