by Calculated Risk on 11/12/2019 09:00:00 AM
Tuesday, November 12, 2019
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): October 2019 Report: Small Businesses Continue to Push the Economy Forward
The small business half of the economy continued its remarkable economic streak, posting a 0.6 point gain in October’s Optimism Index. The 102.4 reading was buoyed by eight of the 10 Index components advancing, as talk of a recession waned in October. The Uncertainty Index declined 4 points but remains historically high heading into an election year.Click on graph for larger image.
Twenty-five percent of the owners selected “finding qualified labor” as their top business problem, more than cited taxes or regulations. Reports of higher worker compensation rose 1 point to a net 30 percent of all firms – a historically high reading. Plans to raise compensation rose 4 points to a net 22 percent.
This graph shows the small business optimism index since 1986.
The index increased to 102.4 in October.
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 a top problem.