Small Business Owner Optimism Remains High

Wells Fargo released today the results of the Q1 2007 Wells Fargo/Gallup Small Business Index, which tracks the optimism of small business owners nationwide. The Index registered at 110 for Q1 2007, dropping a modest four points from its record high of 114 in Q4, 2006.

Despite signs of a weakening economy, 90 percent of small business owners report they are satisfied owning their businesses and 78 percent would do it all over again. The Index tracks six key measures (financial situation, cash flow, revenues, capital allocation, job hiring and credit availability) for both current and future expectations.

"The slight drop in small business owner confidence was evident in both the present situation and future expectations components of the Index, suggesting weaker current and future conditions than the last quarter of 2006," said Dr. Scott Anderson, Wells Fargo senior economist. "The combined pressures of high gas prices, resetting mortgage rates, and moderating home price growth continue to put strains on household balance sheets."