More than half of U.S. small business owners believe the economy is already in a recession

9/14/2023

More than half of U.S. small business owners believe the economy is already in a recession, per Reuters.

A survey revealed that over half of small business owners in the United States hold the belief that the economy is currently in a recession. This perception represents a slight decrease compared to the findings from April, even though most of these businesses reported being in good financial health.

Conducted by the National Federation of Independent Business in July, the survey primarily focused on small businesses' perspectives regarding the state of banking and their credit requirements. It also highlighted that small businesses are notably less concerned about the stability of their banks compared to the immediate aftermath of the spring's bank failures, including the one involving Silicon Valley Bank.

Regarding the economy, the survey indicated that 52% of small business owners believe the economy is already in a recession, a modest drop from the 55% recorded in April. This perception persists despite widespread signs of economic strength and a growing body of evidence suggesting that the economy may avoid a long-anticipated downturn.

Recent economic indicators have showcased robust retail sales and increased spending on services, particularly in the two largest small business sectors. Additionally, businesses express confidence in their own financial well-being and perceive their local economies as relatively stable.