A new study from Wells Fargo (NYSE: WFC) indicates that small business owners still remain pessimistic about the state of the economy as a whole, with the most recent study showing no overall change in perception during the month of January, despite improved revenue outlooks, capital spending and cash flow estimates.
The latest survey, conducted on January 22nd, found that the Wells Fargo/Gallup Small Business Index optimism score came in at -16, a one point decrease from the previous survey, which was conducted in October 2009. The latest survey is 130 points lower than the survey’s all time high which was reached in December of 2006.
A zero score indicates that small business owners have a neutral opinion about their own business’s outlook. A positive score indicates optimism amongst business owners and a negative score indicates that small business owners have a negative view of their own business’ outlook.
Specifically, 42% of small business owners said that their cash flow was somewhat poor or very poor for the last 12 months, up from 36% during the last quarter. 48% of business owners expect an increase in revenue in the next 12 months, compared to 42% during last quarter. 24% expect their spending to increase during the next 12 months compared to 19% during the fourth quarter of 2009.
