Discover’s index that measures small business confidence dipped to 86.1 in June from 87.4 last month, as concerns mount over cash flow issues and the outlook over the economy declines.
Small business owners reporting temporary cash flow issues jumped to 51 percent in June, up from 45 percent in May – the highest since January, according to Small Business Watch, the monthly index from the issuers of the Discover Card.
Forty-five percent of owners reported no cash flow issues, down from 48 percent in May; and 4 percent were unsure.
The Watch recorded a slight increase in confidence on their overall small business outlook: 30 percent said economic conditions for their businesses are improving, up from 28 percent in May; 43 percent said conditions are getting worse in June, down from 44 percent in May; and 34 percent said things are staying the same, up from 24 percent in May.
“Many small business owners are working harder than ever to make payroll, pay their bills and keep their businesses running,” said Ryan Scully, director of Discover’s business credit card.
In June, 29 percent of small business owners said they believe the overall economy is getting better, falling from 35 percent in May; 51 percent say the economy is getting worse, steady from the previous month; and 16 percent see the economy as the same, up from 12 percent in May.
“Last month, more owners reported increasing their spending, which is good news. However, if sales are lagging this month, it’s possible that cash flow was more of an issue.”
Discover’s Small Business Watch is based on a national random survey of 750 small business owners.
