This has small business owners in the United States very worried, indeed. Their optimism is running thin amid fears of a possible federal government shutdown. For most of the year, Main Street businesses have shown a persistently pessimistic outlook. This is indicative of their increasing pessimism with the state of the economic environment.
The recent jump in the economic policy uncertainty index to its highest level since February adds fuel to these worries. Small business owners are right to be anxious about the damaging effects of a government shutdown. This new development has the potential to further complicate what is already a challenging economic environment. These factors have conspired to weigh heavily on their outlook for the near future.
As grim as the collective outlook sounds, there are several positive signs reflected in the data worth noting. And hiring plans have remained relatively strong, even from the depressed levels. First, business owners have indicated they are cautiously optimistic and ready to expand their workforce. Although larger troubles still cast a shadow, this sentiment nonetheless brings a glimmer of hope. Likewise, recent retail sales numbers have been somewhat better than expected, indicating that consumer demand may be starting to firm up.
The manufacturing and service sectors have remained very active these last several weeks. It reflects that entrepreneurs are adapting and succeeding through some of the most difficult circumstances our generation has faced. Small business owners are growing more and more anxious. This understandable concern stems from external factors beyond their control.