Small business owners concerned about their future financial position caused the Wells Fargo/Gallup Small Business Index to decline six points to positive 17 in a survey conducted in July, erasing gains made earlier this year, however business owner optimism has improved “significantly” from the Recession low point in the third quarter of 2010, the report noted.
Future capital spending was driven by investment in equipment and machinery (64 percent) as well as technology, such as computers (61 percent), new software or websites (56 percent), and mobile devices (52 percent). Investment in smartphones rose 11 points for Q2 2011 to stand at 38 percent, while purchase rates for cell phone that are not smartphone, fell four percent compared with the same time period. Investment in tablets like Apple’s iPad rose 12 points to 23 percent, while spending on desktops declined three percentage points to 29 percent.
“Business owners have a lot of unknowns in front of them today,” Doug Case, Wells Fargo small business segment manager, said in a press statement. “This is the first drop in the Index this year and it seems to correlate to the lower percentage of business owners planning to invest in their companies in the year ahead. In the survey, businesses said they’ll be more likely to invest in their businesses when they see improvements
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