NFIB:The Mood of Small Business-and what it means for jobs

The National Federation of Independent Business has released its February assessment of small business optimism.The index rose 0.4 to 94.3,still at a recessionary level.We've had six months of gains,and the number is still below where it was in February of 2011.The average going into the recession of 2008 was about 100.
We're way down,and we need to see it move up,according to NFIB Chief Economist Bill Dunkelberg.Everybody's complaining about uncertainty on taxes,health care,regulations,and where the economy's gonna be.There's really not any confidence that we can solve the problems.Their biggest concern was taxes and red tape at 44%;followed by lagging sales at 20%.
The survey has a 39-year history and a big sample size.
Small business hiring was not as strong in the NFIB report as in the ADP gauge of private company employment.Overall,the NFIB result is a sign the recovery is likely to continue,albeit at a glacial pace.The report suggests cautious optimism,but shows no signs of significant economic improvement that is needed to encourage owners to invest their own money in growing their businesses,NFIB concluded.
Small business is considered the main job engine of the U.S. economy.If it isn't optimistic enough,jobs growth will be crimped until the mood has shifted and investment shows more promise.

Echoing Sentiments:This Recovery

Gross Domestic Product for Q2 came in at an anemic 2.4%,which was weaker than expected.Tom Porcelli of RBC Capital Markets says that,normally,recovery means 4-5% GDP growth.It seems like a pretty good environment for investors to continue their Treasury purchases.If you look at revenue increases,they are only at 9% year over year.The economy still remains very,very moribund.
This sentiment is echoed by Bill Dunkelberg,Chief Economist of the National Federation of Independent Business.The recovery this time has been led by rebuilding inventory,Mr.Dunkelberg observed.For the last two years,we got rid of everything we could trying to stay in business,and now that is being replaced.
Consumer sales aren't there,and profits are down.The consumer doesn't feel comfortable doing anything more than what is absolutely necessary,Bill Dunkelberg noted.
Reports released this morning showed a drop in both factory orders and pending home sales.Under such conditions,triple digit market gains may be unsustainable.
Royal Bank of Canada(RBC)