Small-business owners upbeat about the Sacramento economy

Small-business owners upbeat about the economy

Sacramento Business Journal - 1:39 PM PST Wednesday, January 17, 2007

by San Francisco Business Times

The Wells Fargo/Gallup fourth-quarter survey of small-business owners finds them the most optimistic in four years.

"While many economists are forecasting a weaker economic environment for 2007, small business owners are, according to the results, expressing no signs of an economic downturn," said Scott Anderson, senior economist for the San Francisco bank.

"These optimistic findings indicate expectations for a rebound in activity this year, as the forces that have been inhibiting growth prospects -- such as rising energy prices and interest rates, and stagnant wage growth -- reverse course."

The index set a record high of 114, up four points from the third quarter.

The quarterly index is calculated based on a nationwide survey of about 600 small business owners conducted by the Gallup Organization and sponsored by Wells Fargo & Co. (NYSE: WFC)

Wells is also seeing the optimism of small-business owners reflected in their demand for loans and other bank services.

Small-business lending grew more than 30 percent year-over-year, said Rebecca Macieira-Kaufmann, executive vice president and head of Wells Fargo's small business segment, which lends nationwide.

The bank has also seen sales of its business services package jump more than 50 percent.