- Prior 99.5
- Full report here
The NFIB Small Business Optimism Index fell 0.2 points in January to 99.3 and remained above its 52-year average of 98. Of the 10 Optimism Index components, three increased and seven decreased. Expected real sales volume was the only component with substantial change, increasing by 6 points. The Uncertainty Index rose 7 points from December to 91. A rise in owners reporting uncertainty about whether it is a good time to expand their business was the primary driver of the rise in the Uncertainty Index.
NFIB Chief Economist Bill Dunkelberg said: "While GDP is rising, small businesses are still waiting for noticeable economic growth, Despite this, more owners are reporting better business health and anticipating higher sales."
One major highlight of this report is the new NFIB Small Business Employment Index, which translates multiple jobs-related questions into one single number. Currently, this index tells a story of a balanced labor market, coming in about 1.5 points above its historical average (101.6 current vs 100 average).
The NFIB Small Business Optimism Index is a monthly economic indicator that measures the "pulse" of small businesses in the United States. Published by the National Federation of Independent Business (NFIB) since 1973, it is considered a leading indicator of the health of the U.S. economy because small businesses account for roughly 50% of the nation's private-sector workforce. Despite this, it's not a market moving report because of its volatile nature and the fact that it mostly correlates with the ISM PMIs.
