Small Business Owners Cut Capital Expenditures, Plan to Cut Even More
From Mish's Global Economic Trend Analysis
December 13, 2012 - 2:01pm
According to the latest Gallup survey, Small-Business Owners Pull Back Capital Spending Plans. Moreover, net capital spending by small businesses declined over the last year as well.
Here is the question Gallup asked "Over the next 12 months, do you expect the amount of money your company allocates for capital spending -- such as computers, machinery, facilities, or other long-term investments -- to increase a lot, increase a little, stay the same, decrease a little, or decrease a lot?"
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, according to the Wells Fargo/Gallup Small Business Index. 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 negati...Continue reading this article »