Slower manufacturing likely drag on small business optimism

The growing evidence of a slowdown in manufacturing is likely contributing to the dip in small business optimism that began early in the year.Reports this month from the government and an industry group point to a drop in manufacturing activity. While the manufacturing sector is a relatively small part of the gross domestic product — the government has estimated it at 11.4 percent in the third quarter of last year — most manufacturers are small businesses as are service companies that do business with them.Last week the Commerce Department said factory orders rose 0.1 percent in January, a tiny increase that matched December’s reading but fell short of many economists’ forecasts. Shipments of manufactured goods fell 0.4 percent, the fourth straight month of declines.