The study also found small business and middle market confidence in the U.S. economy fell in the third quarter. Expectations for the financial condition of their company fell 14 points as well, with one in 10 small businesses switching financial institutions.
"Small business confidence has once again declined, but the negative effects have yet to reach the banking industry. If confidence remains negative, we need to be prepared for a further decline in loan demand. Business owners may not retire, but they will continue to retreat from risk," said Bernie Kuechler, project director at Barlow Research.
Kylie Hennagin writes for Financial Planning.