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NRF sees need for continued economic stimulus measures
04 Sep '20
2 min read
Pic: Shutterstock
Small US businesses are highly pessimistic about the coronavirus and this shows the need for continued economic stimulus measures, said National Retail Federation (NRF) chief economist Jack Kleinhenz citing data from the weekly Small Business Pulse Survey launched in May and the Small Business Optimism Index from the National Federation of Independent Businesses.
“Just as a physician checks a patient’s pulse to measure the rhythm and strength of the heartbeat, small business is an important indicator of the comparative health of the local and national economies,” Kleinhenz said in NRF press release.
His remarks came in the September issue of NRF’s Monthly Economic Review. The Small Business Pulse Survey looks at issues such as employment, revenue and supply chain disruptions. In the survey’s first nine weeks, it found pervasive difficulties with business operations and finances, including temporary closings, employment, revenue and cash on hand.
Even though those issues have eased as the economy has begun to reopen, optimism has declined. The survey initially found 30 per cent of respondents thought it would take at least six months for their businesses to recover from the pandemic, while 25 per cent thought recovery would take only two or three months.
In June, the number expecting recovery to take six months rose to 44 per cent and only 10 per cent thought it could come in two or three months. By the week ending August 15, 48 per cent expected recovery would take six months and only 4.1 per cent though it might be possible in two or three. Only 8.5 per cent said their business had already returned to normal levels.
The Small Business Optimism Index fell 1.8 points to 98.8 as of July, ending two months of improvement after a low of 90.9 in April. While the July number was still about average for the survey’s 46-year history, the number of businesses expecting economic conditions to be better in six months dropped 14 percentage points to 25 per cent, NRF added.
In addition, leading business economists surveyed by the monthly Blue Chip Economic Indicators report cited renewal of the extra $600 in weekly unemployment benefits that expired at the end of July as the best way to support recovery, but ranked small business assistance as the next-highest priority.
“Just as a physician checks a patient’s pulse to measure the rhythm and strength of the heartbeat, small business is an important indicator of the comparative health of the local and national economies,” Kleinhenz said in NRF press release.
His remarks came in the September issue of NRF’s Monthly Economic Review. The Small Business Pulse Survey looks at issues such as employment, revenue and supply chain disruptions. In the survey’s first nine weeks, it found pervasive difficulties with business operations and finances, including temporary closings, employment, revenue and cash on hand.
Even though those issues have eased as the economy has begun to reopen, optimism has declined. The survey initially found 30 per cent of respondents thought it would take at least six months for their businesses to recover from the pandemic, while 25 per cent thought recovery would take only two or three months.
In June, the number expecting recovery to take six months rose to 44 per cent and only 10 per cent thought it could come in two or three months. By the week ending August 15, 48 per cent expected recovery would take six months and only 4.1 per cent though it might be possible in two or three. Only 8.5 per cent said their business had already returned to normal levels.
The Small Business Optimism Index fell 1.8 points to 98.8 as of July, ending two months of improvement after a low of 90.9 in April. While the July number was still about average for the survey’s 46-year history, the number of businesses expecting economic conditions to be better in six months dropped 14 percentage points to 25 per cent, NRF added.
In addition, leading business economists surveyed by the monthly Blue Chip Economic Indicators report cited renewal of the extra $600 in weekly unemployment benefits that expired at the end of July as the best way to support recovery, but ranked small business assistance as the next-highest priority.
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