According to the Wells Fargo/Gallup Small Business Index, 28 percent of small businesses plan to increase capital spending in 2012, the highest reported number in four years, while 24 percent of small businesses say that they have already increased capital spending, a five percent increase from October.
The outlook of small businesses on borrowing has also improved, with 27 percent saying that it will be somewhat to very easy to obtain credit in 2012. Thirty-eight percent of companies polled, however, still said that it will be somewhat to very difficult to obtain credit, a decrease from 43 percent in October.
One in three small businesses said in the survey that it was somewhat to very difficult to obtain credit within the past 12 months, while 25 percent of business owners said that it was somewhat to very easy to obtain credit within the past 12 months, the highest percentage since April 2009.
According to Gallup, when small businesses begin investing more in human and physical capital, it is a generally positive sign for the economy. Gallup added, however, that rising fuel costs may offset consumer spending and threaten small businesses’ capital spending plans.