by Calculated Risk on 6/11/2013 08:32:00 AM

From the National Federation of Independent Business (NFIB): Small-Business Confidence Edges Up, Reaches May 2012 Level

For the second consecutive month, small-business owner confidence edged up, according to NFIB’s Index of Small Business Optimism, which increased by 2.3 points to a final reading of 94.4 in May. ...

Job creation plans rose 6 points to a net 6 percent planning to increase total employment, outcome nice improvement after the 4 point decline in March.
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Owners were asked to identify their top business problem: 24 percent cited taxes, 23 percent cited regulations and red tape, 16 percent cited weak sales and 2 percent reported financing/access to credit.

In a little sign of good news, only 16% of owners reported weak sales as the top problem (lack of demand).  During good times, small business owners usually complain about taxes and regulations - and those are now the top problems again.

Click on graph for larger image.

This graph shows the small business optimism index since 1986. The index increased to 94.4 in May from 92.1 in April.   This is still low, but near the post-recession high.

Note: Small businesses have a larger percentage of real estate and retail related companies than the overall economy.