Energy prices, recession and credit availability are among the biggest concerns for U.S. business owners, whose pessimism is at an all-time high in the history of the PNC Economic Outlook survey.

Nearly one in three, 29 percent, are pessimistic about their own company's prospects during the next six months, compared to 21 percent in the spring and 10 percent in last fall's findings of this semiannual survey, introduced in 2003 by The PNC Financial Services Group, Inc.

Three out of four business owners, 74 percent, say the possibility of higher energy prices will have a negative effect on their company during the next six months. The possibility of recession is second at 71 percent and the possibility of inflation is third.

"These results support our view that the U.S. economy has entered into a recession and the economy is likely to remain weak through the middle of next year and beyond if the federal economic stabilization plan is not enacted," said Stuart Hoffman, the chief economist for PNC.

The PNC Economic Outlook survey gauges the mood and sentiment among small business owners, who represent the bedrock of the American economy. Highlights of the newest findings include weaker sales, lower profits and reduced hiring. Fewer business owners expect sales to grow in this weak business environment.

Only 43 percent, compared to 53 percent in the spring and 63 percent last fall, expect an increase in their company's sales over the next six months. Twenty-six percent expect profits will decrease in the near term, a record high for the survey. Likewise, 10 percent expect to reduce the number of full-time employees. Less than one out of five plan to hire new employees.

Additionally, business owners said that they were concerned about growing cost pressures. With higher energy prices and a weak economy, businesses are getting squeezed between the prices they pay and those they can charge customers. Sixty-five percent said they expected an increase in suppliers' prices during the next six months. Nearly half, approximately 47 percent, plan to increase the prices they charge their customers. This figure was up from 43 percent in the spring.

They also cited concerns over tighter credit availability. Consistent with reports of credit market tightening, 25 percent, compared to 18 percent in the spring, say it is more difficult now to obtain credit. Conversely, 7 percent say it is easier to get credit now, down significantly from 14 percent in the spring.

"Enactment of the economic stabilization plan will help to stem more substantial deterioration of credit availability for small businesses as well as for larger businesses and consumers," Hoffman said. "This will help to prevent further weakening of the important contributions to job growth and overall economic activity made by small businesses."