by Bill McBride on 11/13/2012 08:33:00 AM
Tuesday, November 13, 2012
From the National Federation of Independent Business (NFIB): Small Business Optimism Ticks Up Slightly
The National Federation of Independent Business (NFIB) Small Business Optimism Index rose 0.3 in October to 93.1; the slight uptick in the reading did not seem to indicate a dramatic shift in owner sentiment over the course of the month.Click on graph for larger image.
One indicator that rose slightly in October is the frequency of reported capital outlays in the past six months, increasing 3 points to 54 percent. ... Weak sales is still the reported No. 1 business problem for 22 percent of owners surveyed. ... October was another weak job creation month, though better than September due primarily to a reduction in terminations which will raise the net jobs number. According to the October survey, owners stopped releasing workers; the average change in employment per firm rose to just 0.02 workers—essentially zero.
This graph shows the small business optimism index since 1986. The index increased to 93.1 in October from 92.8 in September.
Note: Small businesses have a larger percentage of real estate and retail related companies than the overall economy. This index remains low, and once again, lack of demand is a huge problem for small businesses.
Posted by Bill McBride on 11/13/2012 08:33:00 AM