My read of the entrepreneurs here in the Nashville area is that they are feeling a bit more optimistic. Those who have weathered the storm seem to feel that the worst may soon be over.
The latest national survey from the NFIB seems to support my anecdotal observations, as their Index of Small Business Optimism rebounded in April.
This rebound was not due to hard evidence of economic improvement, but is tied to “soft indicators” — the “feel good” portion of the survey. Expectations for gains in real sales increased.
While small business owners think future prospects are brighter, the daily realities show deep problems remain. Actual employment, capital outlays, inventories, sales and earnings languish at historically low levels.
“At least we seem to be headed in the right direction,” said NFIB Chief Economist William Dunkelberg. “Typically, optimism first returns, then spending follows as confidence builds. But there are a lot of difficult days ahead, even if April’s data represents a turnabout.”