The Index of Small Business Optimism declined 3 points in June 2012, falling to 91.4 and losing gains achieved earlier in the year, according to the NFIB Research Foundation report. Labor market indicators and spending plans for inventories and capital equipment drove about 40 percent of the decline. Small-business owner’s reluctance to expand remained historically high due to political uncertainty. The report’s Optimism Index contains questions on employment, capital outlays, inventories, the economy in general, sales, credit, expansion, and earnings. What other factors affect small-business confidence and how would you integrate them into the report?
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