Thursday, June 26, 2008

Inflation & Fuel Hurting Small Businesses

From the Portland Business Journal:

Small business owners are saving and spending less, as consumer goods and fuel costs top records levels, according to the latest Wells Fargo/Gallup Small Business Index survey.

More than one-third of the 600 surveyed said their personal financial situation as a whole is getting worse. Seventy-five percent of respondents had concerns about paying for gas, and 51 percent worried they will not have enough money for the next 12 months to cover regular medical and dental expenses. Forty-six percent feared they will not have enough money to pay for unforeseen medical emergencies.

Among other findings:
Half of the business owners surveyed say they've postponed a major purchase in the past three months.

Nearly as many, 44 percent, say they've reduced the amount of money they've deposited into savings, checking or a CD.

Thirty-one percent say they have reduced their contribution to a retirement account.

Everybody is cutting back their expenses. Do you still hear people debate slow down vs. recession? I don't.