Small Business Owners Predict Recession

A slim majority of small business owners in the U.S. believe a recession will hit in the next year, according to new survey data.

The latest data from the CNBC/SurveyMonkey Small Business Confidence Index, for the first time in its history, asked respondents for their recession forecast. CNBC reports that the overall trends in the survey findings reveal more trepidation by business owners and declining confidence. Hiring and revenue expectations, along with business conditions sentiments, have also fallen from their peaks in Q3 2018.

Government dysfunction is one place to look for a cause of declining confidence, especially with the recent shutdown and impasse over immigration reform between President Donald Trump and the Democratic Party opposition newly in control of the House. Just 20 percent of small-business owners said the shutdown was a major concern for their business.

A nationwide survey of more than 10,000 Americans conducted by SurveyMonkey in January also found a high level of recession anxiety, with 63 percent of Americans saying a recession was likely in the next year and just 10 percent saying it was "very unlikely." The SurveyMonkey consumer confidence index also hit its lowest point since December 2017.

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