by Calculated Risk on 11/12/2013 07:31:00 AM

From the National Federation of Independent Business (NFIB): October Small Business Optimism Takes a Tumble

Fall arrived literally this month, as small-business optimism dropped from 93.9 to 91.6, largely due to a precipitous decline in hiring plans and expectations for future small-business conditions. ... The stalemate in early October over funding the government ... left 68 percent of owners feeling that the current period is a bad time to expand; 37 percent of those owners identified the political climate in Washington as the culprit—a record high level.

Job Creation. Job creation was up in October. NFIB owners increased employment by an average of 0.11 workers per firm in October after September’s decline

Click on graph for larger image.

This graph shows the small business optimism index since 1986. The index decreased to 91.6 in October from 93.9 in September.  

This decline was expected due to the shutdown of the government, and optimism will probably increase again in November or December.