DOW JONES NEWSWIRES
Small-business owners showed less confidence in the economy this
month, according to a Discover Financial Services (DFS) survey,
with about 76% of respondents reporting that rising fuel prices
were hurting profits.
Small-business owners' confidence has been declining since
January, after gaining some traction late last year.
The monthly confidence gauge fell to 86.5 in March from 90.2 in
February.
"Nearly a third of small business owners told us they have
contemplated going out of business sometime during the past two
months, which is up from spring of 2008," business credit-card
business director Ryan Scully said.
About two-thirds said they expect to tap personal assets this
year to remain in business. Of the 77% of respondents who said
their profits were hurt by the economic climate in the past three
years, just 22% said they have seen a sustained recovery. Among
those who haven't, 14% said they may never recover, while 45%
expect any recovery in their businesses will take more than a
year.
The portion of small business owners that said the U.S. economy
is getting worse increased to 54% in March from 41% in February,
reaching the highest level since September. About 27% of
respondents said conditions were improving, down from 34%.
The percentage who see business conditions worsening in the next
six months rose by 2 percentage points to 42%, while the portion
who expect an improvement fell 3 percentage points to 30%.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481; Tess.Stynes@dowjones.com