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Tuesday, February 11, 2020

Small Business Optimism Increased in January

by Calculated Risk on 2/11/2020 08:47:00 AM

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): January 2020 Report

The small business Optimism Index started the New Year ... rising 1.6 points to 104.3 in the month of January.
New job creation jumped in January, with an average addition of 0.49 workers per firm, the highest level since March 2019, rebounding back into strong territory. Finding qualified workers remains the top issue for 26 percent reporting this as their number one problem, 1 point below August’s record high.
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 104.3 in January.

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.