The Economic Mood is Cooling.

From Marketplace, I'm Sabrie Benashore, in for David Brancaccio.

Yesterday we mentioned surveys of farmers showed growing economic pessimism in that sector.

Well, today survey data from the

National Federation of Independent Business show a decline in optimism among small

businesses generally in August. Inflation remained the top issue.

Joining us to talk about that and more is

Jeffrey Cleveland, Chief Economist at Paiden and Regal. Good morning.

Good morning, Sabree.

So small businesses are getting a little less optimistic. Do you sense there is a sort of

change in economic mood afoot?

I do think over the last couple of months we are experiencing a bit of a growth scare

where investors are concerned that the economy is slowing and we may be close to or on the cusp of an economic downturn.

I tend to be a bit more upbeat.

I look at last week's jobs report, still adding 140,000 jobs as of August.

You know, this happens from time to time where investors over 40,000 jobs as of August.

You know, this happens from time to time where investors overreact.

And I think that we're in the midst of that right now.

Perhaps that's what you see also looming over the small business optimism survey.

The health of the economy of the labor market as well as the inflation numbers we're going to

get tomorrow from the consumer price index.

Those are going to determine whether the Fed cuts interest rates by a quarter of a point or a half a point.

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