Small Biz Owners Grow More Pessimistic in July

The survey found that the number of small business owners who expect their sales to fall in the next three months rose 3 percentage points to 28 percent. Only 21 percent said they planned to buy equipment or real estate in the next three to six months.

William Dunkelberg, the group's chief economist, said uncertainty over taxes, which is likely to continue until after the election, contributed to owners' uneasiness. He also noted, "Nothing happened in July that would make owners more optimistic about the near-term future."

The survey was in line with other reports that pointed to growing pessimism among small businesses. Although reports from the Labor Department and the payroll firm ADP showed a pickup in job growth last month, surveys have shown that small businesses are borrowing less. That's a sign they're holding off on expanding. The NFIB survey showed that the vast majority of the owners it surveyed — 79 percent — hadn't made any changes in their employment levels during July.

The survey questioned 1,803 randomly selected NFIB members.