With weak sales as a major challenge, U.S. small business owners have no plans to hire over the next six months and many plan to raise selling prices to preserve profit margins in the face of rising costs, according to the PNC Economic Outlook survey's newest findings. The fall 2011 findings of the biannual survey provide insights on the current mood and sentiment of U.S. small business owners.
Optimism Shrinks Amid Slow Pace of Growth
Less Optimistic about Own Company:
Just under one-fifth (18%) remain optimistic about their own company's prospects during the next six months, lower than in the past year. Just under one-fourth (24%) are pessimistic which is up from 17% last spring.
Price Hikes to Preserve Profits:
Just over one-third (35%) plan to raise their selling prices and only 7% intend to cut, which is similar to the potential pricing pressures identified six months ago.