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Tuesday, April 14, 2020

Small Business Optimism Decreased Sharply in March

by Calculated Risk on 4/14/2020 08:29:00 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): March 2020 Report

The NFIB Small Business Optimism Index fell 8.1 points in March to 96.4, the largest monthly decline in the survey’s history.
[H]iring plans experienced a significant drop from February yet finding qualified workers remains the top issue for 24% of small employers who reported this as their No. 1 problem.

This survey was conducted in March 2020. A sample of 5,000 small-business owners/members was drawn. Six hundred twenty-seven (627) usable responses were received —a response rate of 12.5 percent.
emphasis added
Small Business Optimism IndexClick on graph for larger image.

This graph shows the small business optimism index since 1986.

The index decreased to 96.4 in March.

This index will decline sharply in April (and the response rate will probably decline).