Focus

Why so glum?


How blue are you? No, I am not talking about your political views. Are you depressed? Despondent? Pessimistic?

If so, you are among friends. According to the National Federation of Independent Businesses' (NFIB's) Small Business Economic Trends Report, the current optimism index among small-business owners is 89.2, the lowest it's been since 1986.

Although some economists are quick to draw parallels between the current recession and the one during the 1980s, NFIB Research Foundation Senior Research Fellow William Dennis says this recession is not as bad.

"There's a considerable difference between the [recessions] themselves," Dennis told CNNMoney.com. "It was much, much worse in 1980. What sent the index down [this time] really has to do with just a general mood."

What is contributing to that somber mood goes beyond the broad strokes of high oil prices and the subprime lending mess. Consider:

  • Forty-four percent of small-business owners tell NFIB they are spending more time working for their companies than they did six months ago.
  • About half of those surveyed by NFIB say their selling prices are higher than six months ago, mainly because of higher costs.
  • Twenty-one percent of small-business owners have fewer employees and 21 percent decreased their capital investments during the past six months.

So what can you do to boost your mood? Unfortunately, there isn't much advice out there that you probably haven't already heard. Many roofing contractors know that during the long term, cycles like these are inevitable. The gist of what most experts are saying is to gird yourself for a rough ride and do the best you can. And at least you'll know you are in good company.

Ambika Puniani Bailey is editor of Professional Roofing and NRCA's senior director of communications.

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