Tuesday, June 11, 2019

Small Business Optimism Index increased in May

by Calculated Risk on 6/11/2019 09:09:00 AM

CR Note: Most of this survey is noise, but there is some information, especially on the labor market and the "Single Most Important Problem".

From the National Federation of Independent Business (NFIB): May 2019 Report: Small Business Optimism Index

Small business optimism eclipsed pre-shutdown levels, increasing 1.5 points to 105.0 in May.
..
[S]mall business owners added a net addition of 0.32 workers per firm, with 25 percent citing the difficulty of finding qualified workers as their Single Most Important Business Problem, matching the record high. Sixty-two percent of owners reported hiring or trying to hire employees, up five points from last month, but 54 percent reported few or no qualified applicants for the positions they were trying to fill (up five points).
emphasis added
Small Business Optimism IndexClick on graph for larger image.

This graph shows the small business optimism index since 1986.

The index increased to 105.0 in May.

Note: Usually small business owners complain about taxes and regulations (currently 2nd and 3rd on the "Single Most Important Problem" list).  However, during the recession, "poor sales" was the top problem. Now the difficulty of finding qualified workers is the top problem.