Small Business hiring plans plunge, September another month of low expectations and pessimism, Rising health care and energy costs, Federal taxes

Small Business hiring plans plunge, September another month of low expectations and pessimism, Rising health care and energy costs, Federal taxes

“With a 63.7% labor force participation, “conditions in the labor market are considerably worse than indicated” in July’s report”…economist Joshua Shapiro, WSJ August 3, 2012

“Since the Democrats took control of both houses of congress in January 2007, the number of people who could only find part time work has gone up 215 percent”…Citizen Wells

“Student health care costs have doubled, tripled and in some cases increased over 1000% in 2012. Premiums for employer provided family coverage rose $2,370 since 2009, Obamacare penalties to hospitals will average $125,000 per facility in 2013 and gasoline has risen over $2 per gallon since Obama took office.”…Citizen Wells

From the National Federation of Independent Business October Survey.

“Hiring Plans Plunge: Small Business Optimism Drops 0.1

Expectations for the Future Remain Low

September was another month of low expectations and pessimism for the small-business community, with the NFIB Small Business Optimism Index losing 0.1 points and falling to 92.8. The recession-level reading was pulled down by a deterioration in labor market indicators, with job creation plans plunging 6 points, job openings falling one point and more firms reporting decreases in employment than those reporting increases in employment. Since the commencement of NFIB’s monthly surveys in 1986, the Index has been below 93.0 a total of 56 times; 32 of which have occurred since the recovery began in June 2009.”

DOWNLOAD THE REPORT   READ THE PRESS RELEASE

Small business optimism index

“Highlights

  • Capital Expenditures: Small-business owners are still in “maintenance mode,” with the frequency of reported capital outlays over the past six months falling 4 points to 51 percent. Of those making expenditures, 34 percent reported spending on new equipment (down 7 points from the previous month), 16 percent acquired vehicles (down 5 points), and 14 percent improved or expanded facilities (unchanged). Four (4) percent of owners acquired new buildings or land for expansion (down 2 points) and 12 percent spent money for new fixtures and furniture (unchanged). Overall, there was a substantial reduction in capital spending activity. The percent of owners planning capital outlays in the next three to six months fell 3 points to 21 percent. While the number of owners who characterized the current period as a good time to expand facilities went up 3 points (seasonally adjusted) to seven percent, this is only half of the 14 percent of owners who said the same in September 2007. The net percent of owners expecting better business conditions in six months rose 4 points to two percent after posting a 6 point improvement last month, albeit still registering a pessimistic collective view. Not seasonally adjusted, 15 percent expect an improvement in business conditions (up 1 point), and 20 percent expect deterioration (down 4 points). A net one percent of all owners expect improved real sales volumes.
  • Sales: Weak sales continue to be an albatross for the small-business community. The net percent of all owners (seasonally adjusted) reporting higher nominal sales over the past three months was unchanged at a negative 13 percent, cementing the 17 point decline since April and affirming weak GDP growth for the second quarter. Twenty-one (21) percent still cite weak sales as their top business problem—historically high, but down from the record 34 percent reached in March 2010. Seasonally unadjusted, 23 percent of all owners reported higher sales (last three months compared to prior three months, down 1 point) and 30 percent reported lower sales (up 1 point). Consumer spending remains weak and high energy costs continue to “tax” consumer disposable income. The net percent of owners expecting higher real sales was unchanged at one percent of all owners (seasonally adjusted), down 11 points from the year high of net 12 percent in February. The weak reading is unlikely to trigger orders for new inventory or business expansion. Not seasonally adjusted, 24 percent expect improvement over the next three months (down 4 points) and 31 percent expect declines (up 3 points).
  • Job Creation: Job creation plans showed that small-business owners created fewer jobs in September than in the two previous months. Not seasonally adjusted, 10 percent plan to increase employment at their firm (down 3 points), and 11 percent plan reductions (up 2 points). Seasonally adjusted, the net percent of owners planning to create new jobs fell 6 points to four percent, a historically weak reading, especially in a recovery. Essentially, hiring is keeping up with population growth, but not exceeding it. Seasonally adjusted, 10 percent of the owners reported adding an average of 2.2 workers per firm over the past few months, and 13 percent reduced employment an average of 3 workers. The remaining 77 percent of owners made no net change in employment. Fifty-one (51) percent of the owners hired or tried to hire in the last three months and 41 percent (80 percent of those trying to hire or hiring) reported few or no qualified applicants for open positions. The percent of owners reporting hard to fill job openings fell 1 point to 17 percent of all owners. The only region of the country that saw any positive job growth was the West North Central states, largely because of energy production. “

“Consumer spending has barely advanced this year, and consequently so has job creation. Employment is still 4 million lower than it was in the first quarter of 2008 (first quarter). The population grows about 1% annually. A few more jobs are needed to take care of that, and that seems to be about all we are getting. The percent of owners reporting hard to fill job openings fell 1 point to 17% of all owners, no help for a lower unemployment rate. Seasonally adjusted, the net percent of owners planning to create new jobs fell 6 points to 4%, a historically weak reading, especially in a recovery. Owners remained pessimistic about the future in September and consequently hiring plans remain weak. Reported job creation for the past few months was negative. More workers let go than hired, signaling a weak BLS jobs report for September, around 100,000 new jobs overall.”

“Uncertainty has cast a cloud over the future for small business owners, making it difficult to make commitments to new spending and hiring. In a recently released NFIB Problems and Priorities survey, owners rated the severity of 75 business issues. Uncertainty about the economy ranked second while uncertainty about government policy ranked fourth. For perspective, securing long term funding was 56th and finding qualified workers 32nd. With a 50/50 election, according to the polls, and very different sets of policies that might be put in place, owners are unwilling to put their own capital on the line until the future path of the economy and economic policy becomes clearer.

MOST IMPORTANT PROBLEM: 2012
1.  Rising Cost of Health Care Insurance
2.  Uncertainty over Economic Conditions
3.  Energy Costs
4.  Uncertainty over Government Actions
5.  Unreasonable Government Regulations
6.  Federal Taxes on Business Income
7.  Tax Complexity
8.  Frequent Changes in Federal Tax Laws and Rules
9.  Property Taxes
10. State Taxes on Business Income”

Read more:

http://www.nfib.com/research-foundation/surveys/small-business-economic-trends

 

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13 responses to “Small Business hiring plans plunge, September another month of low expectations and pessimism, Rising health care and energy costs, Federal taxes

  1. Truthbetold11

    My company is hiring big time but there all low level jobs. And the gap between mgt and worker. Is like. Rich and poor. No middle mgt.

  2. citizenwells

    NFIB President and CEO Discusses This Month’s Survey

    http://bcove.me/mh6u8l1s

  3. Official Trailer For “Obama: A Profile In Deception”

  4. citizenwells

    bob.
    Excellent.

  5. This is great news!
    *******************

    Romney Leading Obama Among Absentee Ballots in Florida

    10/09/12

    According to the Tampa Bay Times, Republicans have a near 4.5% lead in absentee ballot requests and an even bigger 7.5% lead among absentee ballots returned.

    florida absentee

    Tampa Bay Times:

    Absentee Ballot Requests:

    REP 855,344 (43.40%, +4.43)
    DEM 767,968 (38.97%

    Absentee Ballot Returns:

    REP 12,323 (45.54%, +7.51)
    DEM 10,289 (38.03%)

    I thought this was fantastic news until I saw that Republicans had a 15% lead in the 2008 requests. But if Republicans are more likely to return their ballots, they are also more likely to vote on election day. Let’s hope the trend continues.
    Read more at http://www.reagancoalition.com/articles/2012/20121009007-florida-absentee.html#mec1Pri3q2TidcZ8.99

  6. HonorFirst | October 9, 2012 at 8:25 pm |

    ABC News: No Protest Outside Libya Consulate Before Attack
    http://www.realclearpolitics.com/video/2012/10/09/abc_news_no_protest_outside_libya_consulate_before_attack.html
    ******************************
    The wheels are coming off of the usurpers magical mystery tour bus.

    ABC almost looked pained to report that Obama lied.

  7. Jerome Corsi:

    “OBAMA’S RING: ‘THERE IS NO GOD BUT ALLAH'”

    “NEW YORK – As a student at Harvard Law School, then-bachelor Barack Obama’s practice of wearing a gold band on his wedding-ring finger puzzled his colleagues.

    Now, newly published photographs of Obama from the 1980s show that the ring Obama wore on his wedding-ring finger as an unmarried student is the same ring Michelle Robinson put on his finger at the couple’s wedding ceremony in 1992.

    Moreover, according to Arabic-language and Islamic experts, the ring Obama has been wearing for more than 30 years is adorned with the first part of the Islamic declaration of faith, the Shahada: “There is no God except Allah.”

    Egyptian-born Islamic scholar Mark A. Gabriel, Ph.D., examined photographs of Obama’s ring at WND’s request and concluded that the first half of the Shahada is inscribed on it.

    “There can be no doubt that someone wearing the inscription ‘There is no god except Allah’ has a very close connection to Islamic beliefs, the Islamic religion and Islamic society to which this statement is so strongly attached,” Gabriel told WND.”

    http://www.wnd.com/2012/10/obamas-ring-there-is-no-god-but-allah/
    ==========
    At YouTube:

    “Sen. Barack Obama slips up on ABC’s This Week with George Stephanopoulos and refers to “my muslim faith”.”

    Uploaded on Sep 7, 2008

  8. protectourcivilrightsfreedoms

    Obama: A Profile In Deception – Full Length Educational Documentary Movie

    Published on Aug 28, 2012 by teampacusa

    https://teampacusa.com

    Obama – A Profile in Deception is a voter education study discussing the Obama Administration and the 2012 election.

    Program Index
    0:00 — INTRODUCTION
    1:52 — HOPE Debt Statistics — 2:24 Who Pays Taxes? — 6:23 Social Security — 7:17 Obama Contempt for America — 7:48
    9:42 — CHANGE Jeremiah Wright — 10:26
    11:16 — OBAMA AMERICA AND ISLAM Haiti and Our Flag Guantanamo/Enhanced Interrogation First Interview — Al Arabiya Cairo Speech/Colonialism Military Field Interrogation Manual Appeasement of Iran/Unconditional Iran Hostage Crisis Reagan and Iran — 17:58 Obama Bows to Saudi King — 18:11 Obama Withdraws Defense Shield in Czechoslovakia and Poland
    18:27 — OBAMA AND FOREIGN POLICY Obama Withdraws European Missile Defense Shield A History Lesson: Hitler Obama and Putin — 21:20 Obama, Ahmadinejad and Iran Withdrawal of European Missile Defense Shield
    24:35 — ECONOMY Employment Statistics Martha’s Vineyard American Jobs Act Jeff Immelt Immelt and China Boeing and National Labor Relations Board GE and Taxes NBC and MSNBC Unions/NLRB GE and China Hoffa and Teamsters Biden and Labor Obama Betrayal of Young and Older Voters
    36:00 — GLOBAL WARMING Al Gore — An Inconvenient Truth Global Cooling Hockey Stick Fraud Climatologists Now Disavow Manmade Cause Obama Bankrupts Coal Industry Maxine Waters Cross-Examines Shell Oil CEO Keystone Pipeline and the EPA US Massive Energy Reserves Solyndra Green Jobs — $5M Per Van Jones — Obama’s Communist Green Czar Bill Ayers — Obama Ties
    50:00 — ISRAEL Obama Disrespects Netanyahu Obama Encourages Return to Pre-1967 Borders Obama on the Bible Obama and the Koran Obama Calls Netanyahu a Liar American Jews and Obama Obama Approves Osama Bin Laden Burial Service on US Aircraft Carrier
    56:55 — INTELLIGENT DESIGN
    59:44 — THE ENVIRONMENT EPA
    1:02:12 — THE JUDICIARY U.S. Supreme Court Justice Ginsberg Rejects U.S. Constitution as a Model Obama Supports Confessed Rapist/Murderer Dred Scott Roe v. Wade and Abortion Eric Holder Mirandizing Terror Suspects Black Panthers Holder Harasses CIA Agents Fast and Furious
    1:10:03 — OBAMACARE Unions and Obamacare Obamacare Waivers Nancy Pelosi $500B Stolen from Medicare to Fund Obamacare
    1:14:34 — CLOSING REMARKS

    http://www.facebook.com/TEAMPACUSA
    https://twitter.com/TEAMPACUSA

  9. Obama alternatively told classmates he was an Indonesian prince or Kenyan royalty. Caldwell also recounts how a young Obama reacted to a disturbing racial comment from a tennis pro. This is the edited transcript of an interview conducted on June 27, 2012.

    http://www.pbs.org/wgbh/pages/frontline/government-elections-politics/choice-2012/the-frontline-interview-kristen-caldwell/

  10. Good Morning CW et. al. – I saw where some employers are toying with the idea of making employees over the number of 49 part-time.

  11. Good morning Zach, et al.
    No surprises.
    New post.

  12. http://www.freerepublic.com/focus/f-news/2942706/posts

    Moody’s targets California cities for downgrades
    Yahoo News ^ | 11 hrs ago

    Posted on Wednesday, October 10, 2012 8:27:33 AM by DeaconBenjamin

    One of the nation’s top credit rating agencies announced Tuesday that it will review dozens of California cities for possible downgrades amid mounting concern over municipal bankruptcies and bond defaults.

    Moody’s Investors Service will scrutinize the ratings of bonds in 30 California cities. The agency already had downgraded eight municipal pension obligation bonds.

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