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Optimism increases for small business owners

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More than 20 percent of small business owners plan to increase spending, up from 16 percent last month, according to a recent survey.

| October 25, 2010

RIVERWOODS, Ill. – Small business economic confidence rebounded in October as more small business owners report economic conditions for their businesses and for the country are getting better, according to the Discover Small Business Watch. The monthly index rose to 84.2 in October, up 10.4 points from 73.8 in September – the biggest one month gain since April.

"The fall season has ushered in more positive views of the economy, but in this politically charged atmosphere, small business owners are likely in a holding pattern with the rest of us to see how the economy responds after Election Day," said Ryan Scully, director of Discover's business card. "When we asked small business owners whether there would be a greater impact on the economy if Republicans win control of Congress or Democrats remain the majority, they leaned in the direction of having a change."

This month, 28 percent of small business owners expect economic conditions for their businesses to get better in the next six months, up from 20 percent last month; 43 percent think conditions will worsen, down from 55 percent, 24 percent expect them to stay the same.

Perceptions of the overall economy's direction also are improving. In October, 31 percent of small business owners say the economy is getting better, up from 26 percent in September; while 48 percent say it's getting worse, and 17 percent think it's the same.

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