The NFIB survey asked 11,000 small business owners to choose their single most important problem from a list of ten factors, such as taxes, inflation, or government requirements and red tape.

The reported results indicate that inventory investment levels are at historic lows, capital expenditures are on hold, and businesses are contemplating additional layoffs. But to me, the real news is that a third of participants cited poor sales as the greatest problem facing their business right now (an all-time high for this category).

Although the survey recognized pent-up demand is a bright spot (think cars), housing markets have stopped free-falling in many areas and the stock market is up, NFIB members remain exceedingly concerned about taxes and government regulation.

But the other major concern is the level of uncertainty being created by government, the usually source of uncertainty for the economy. The “turbulence” created when Congress is in session is often debilitating, this year being one of the worst. Themes including “tax more,” “tax the rich even more,” “VAT taxes,” higher energy costs due to Cap and Trade, mandates and taxes for health care, threats of “stimulus II,” incomprehensible deficits, and a huge pool of liquidity created by the Federal Reserve Bank that threatens price stability and higher interest rates. The list goes on and on. There is not much to look forward to here and good reason to “keep your powder dry.” Uncertainly is the enemy of the real economy as well as financial markets.

What is the greatest problem facing your business and how do you plan to address it?

Eight times a year in anticipation of the Federal Reserve Board’s meetings, each Federal Reserve Bank gathers anecdotal information on current economic conditions in its District through reports from Bank and Branch directors and interviews with key business contacts, economists, market experts, and other sources. Commonly known as the Beige Book, this information is summarized by District and sector and an overall summary of the country’s economy is given.

On balance, economic conditions in the [Richmond] District remained weak in June and early July. Retail and services firm revenues continued to shrink, and contacts reported falling wages and steady or declining employment levels. Price growth in the service sector was slow. Commercial real estate activity softened further, with declining rents, increased concessions, and rising vacancy rates in some markets. Commercial lending activity continued to decline as loan demand remained subdued and some institutions reported tightened credit standards. Meanwhile, residential real estate contacts gave mixed reports about housing activity. Residential lending slowed as the slight increase in purchase loans was offset by a drop in demand for refinances. On a brighter note, manufacturing activity continued to strengthen in recent weeks as contacts reported increased shipments, new orders, and capacity utilization, and a moderation in the employment decline.

The other significant economic news is that new house sales increased nationally by about 11 percent, the steepest increase in more than eight years, as buyers apparently took advantage of low interest rates and a federal tax credit for first-time home-buyers.

Locally, the news was not as good, in statistics compiled by the Associated Press and reported in the News & Observer:

In the Triangle, which was slower to join the housing downturn, 401 new homes were sold in June, Triangle Multiple Listing Services data show. The total, which includes homes in Durham, Johnston, Orange and Wake counties, was down 38 percent from the same month last year. The average price of a new home dropped 9 percent to $295,500 during the year.

Existing home sales, meanwhile, totaled 1,997 during June, down 14 percent from a year ago. It was the slowest June in a decade, but it was the smallest year-over-year decline in any month since late 2007, hinting at stability. The average price of a re-sold home sold in the four-county area last month was $224,200 — 7 percent

How is your business weathering the recession and recovery? What programs would make a difference for yoru business?