NFIB: US Small Business Optimism Begins to Fade
Sentiment among US small business owners softened slightly in January—down slightly after strengthening for the previous two months. The NFIB survey released on Tuesday (February 10th) showed the Small Business Optimism Index fell 0.2 points to 99.3, with seven of the 10 components weakening.
The most noticeable decline: expectations that business conditions will improve. The portion of business owners expecting future business conditions to improve fell 3 points to 21%—a sign that optimism is starting to cool, especially as hiring plans have eased and the number of companies reporting job openings has been less robust than in the previous month.
But the story isn't all gloom. There are signs that "consumption expectations" are still alive: real sales expectations (adjusted for inflation) actually rose the most, with 16% of business owners expecting sales to improve in the next three months (up 6 points from December). Furthermore, 15% believe it's a good time for expansion—the highest level in six months.
Regarding prices, inflationary pressures have begun to ease but are still far from normal. The net share of those raising average selling prices fell to 26% (a three-month low), but remains well above the historical average of 13%—and many businesses still plan to raise prices in the next three months. Meanwhile, the Uncertainty Index rose 7 points to 91, with "taxes" once again becoming the number one complaint, followed by labor quality.
Source: Newsmaker.id
