Small businesses think economy has bottomed - Triangle Business Journal:

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NFIB’s index of small business indicatorsrose 2.1 pointds in May to 88.9, following a 5.8 poin t jump in April. The index had plummeted to 81 in close to its record 1980 lowof 80.1. “It does appear that the decline in spendinh for inventory and capital projects has bottomed and will turn up in thecominf months,” said NFIB Chief Economisgt William Dunkelberg. A net 12 percent of smalp business owners expected general business conditions to be better six monthxfrom now, a gain of 10 percentage points from Except for September 2008, when 14 percent expected the economh to improve, this is the highest number for this indicator sinced 2005.
The current profit picture is still dismal, however. A net 43 percen said their earnings were lower during the past quarter than they were in the previous About 16 percent of small business owners reported that loans were harderto get, the highestr reading since the recession of the early 1980s. But only 5 percent reported that finance wastheie No. 1 business problem. More small businesse s plan to reduce employment rather than hire more but the rate of declinreis slowing. The Conference Board, which tracks eight labo r market indicators, said its Employment Trends Indexd roseby 0.2 percent in May, which is noteworthyt because it’s the first increasee in 16 months.
“The moderation of the last two months is certainly a sign that the declins in job losses is real and signalsd that the worst is saidGad Levanon, the board’s seniort economist. “However, as the economic recovery over the comingt months is likely to be very we still expect the unemploymentf rate to continue to increase to double digits by the end of this year and into The reported that 41 percent of companies in the service secto plan to add jobs inJune -- the highestf percentage since September 2008. Nearluy 17 percent plan to eliminate jobs. In manufacturing, slightly more companies plan to lay off workere thanhire workers.
Manufacturing still has a long way to go beforesit recovers, according to data tracking orders for machiner tools and elated equipment. U.S. consumption of manufacturing technology in April was down 42 percent from the previous month and down 78 percent compared with April according to the andthe ’ Association. “Wes still have a couple of rough months said AMT President Douglas For more: , , or .
More than 14,00o0 businesses filed for bankruptcy protectioh in the first quarterof 2009, a 64 percent increas over the same period a year The number of business filings was up 11 percent over the totalk for the fourth quarter of 2008, accordinh to the Administrative Office of the U.S. Nearly 10,000 of the business filingas in the first quarter were Chapter7 liquidations. Chapter 11 reorganizationsw accountedfor 3,421 filings. Overall bankruptcu filings, including personal bankruptcies, totaled 330,447 in the first quarter of 2009, up nearly 35 percen t from the same period a year Forthe 12-month period that ended Marchj 31, more than 1.
2 million bankruptcies were file d — the highest 12-month total sinced Congress tightened bankruptcy rules in October 2006.