The Southern states are most optimistic in regard to the overall business strength with 55% of respondents reporting an increase in revenue expectations.
The most pessimistic region was the Northeast, where although the SBCI increased from 23 to 27 points from the second quarter of 2008, it fell nine points below the national average. This was led by 37% of those reporting who believe the outlook for the general economy will worsen in the next 12 months; this is five points higher the national average.
More than 500 small businesses participated in the SBRB poll.
Nationally, small business owners and managers throughout the U.S. reported higher levels of expectations for the next 12 months. 40% of the respondents indicated they expect the economy to improve. This is a 12 point increase from previously reported quarter. Of the participants, 36% expect revenues to increase and 31% plan to increase hiring.
Increased optimism in the West/Pacific and South/Southwest drove the overall increase and improved outlook toward the nation's economy in the next 12 months. Owners and managers in the West/Pacific recorded a regional SBCI of 38, 10 points higher than the second quarter of 2008. Respondents in the South/Southwest recorded a regional SBCI of 44, eight points higher than the current national average.
The opinions and projections about the strength of the economy, revenues and hiring looking forward 12 months are the three key ingredients to determining the SBCI, and provide the basis for these quarterly and annual comparisons.
