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Tuesday, August 13, 2019

Small Business Optimism Index Increased in July

by Calculated Risk on 8/13/2019 08:44:00 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): July 2019 Report: Small Business Optimism Index

The Optimism Index rose 1.4 points to 104.7, an exceptional reading. Seven of the 10 components advanced, two fell, and one was unchanged.
Job creation slowed in July, falling to an average addition of 0.12 workers per firm on average. Finding qualified workers is becoming increasingly difficult with a 46-year record high of 26 percent reporting finding qualified workers as their number one problem.
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 104.7 in July.

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.