Today’s buzz in the nation’s capital was on the newly revised Senate GOP plan to replace Obamacare, even as Majority Leader Mitch McConnell still lacks enough votes to pass the measure.
Because of that Congressional deadlock, business owners’ expectations for better business conditions tumbled in the June survey of Small Business Optimism, along with plans to create jobs. National Federation of Independent Business’ conducts this monthly rating of sentiments.
“Small business optimism dropped in response to the gridlock in the Senate over the healthcare reform bill,” said NFIB President and CEO Juanita Duggan. “This happened in March, when optimism (also) dipped after the House initially failed to repeal Obamacare.”
“The Index remains at a historically high level, but within (it) there are signs of trouble that should be a concern,” said NFIB Chief Economist Bill Dunkelberg. “Fewer business owners expect business conditions to improve, and fewer expect sales to improve.”
The Optimism Index shot up last November after the election based on expectations that Congress and the President would reform taxes and healthcare. The Index fell 0.9 points last month to 103.6. Four of the 10 components posted a gain. Five declined, and one remained unchanged.
“As Washington fails to deliver on those two priorities small business optimism is dropping,” said Duggan. “Gridlock is driving down small business optimism, which will eventually drive down the economy.”
Click here to view the entire NFIB Index of Small Business Optimism.