Small-Business Optimism Faltering

As the weather cools off, so does the optimism of America's small-business owners. In August, NFIB's Small-Business Optimism Index fell more than two points to 95.9, the lowest reading recorded since March 2003.

Borrowing difficulites seem to be the main trigger of the downward turn. Regular borrowing activity was reported by 46 percent of owners, up eight points from July, and the highest level recorded in the survey's 20-year history.

"Credit has become more expensive. It's significant that more owners want it and a higher percentage of owners are having a tougher time getting it," said Bill Dunkelberg, NFIB's chief economist. "Owners expect the coming months to bring increased borrowing difficulties."

Two positive signs in the monthly survey: the percent of firms with unfilled job openings and the percent of owners planning to create new jobs.