12/20/2023 0 Comments Small business optimism index chart![]() ![]() Among the 10 issues listed in the survey, quality of labor still ranks first at 24 percent, three points below the survey high of 27 percent. The labor-market dynamics have made quality of labor the most important issue for small businesses. The combination of healthy labor demand and weak supply has 31 percent of firms saying they have already increased compensation over the past three months while 16 percent intend to increase worker pay over the coming months. ![]() At the same time, the percentage of firms reporting few or no qualified applicants for job openings was 47 percent, down from 52 percent in February and now 10 points below the record 57 percent from August 2019. Surprisingly, 35 percent (versus a record 39 percent) of firms still report having openings they are not able to fill at the moment. The percentage of firms planning to increase employment dropped to 9 percent in March versus 21 percent in February and a high of 26 percent in August 2018. Within the details of the small business survey, the percentage of respondents believing now is a good time to expand came in at 13, down from 26 in February while the net percentage of respondents expecting better economic conditions (“better” minus “worse”) fell to 5 in March versus 22 in February (see bottom chart).Ī net -12 percent of respondents expect higher sales over the coming months, down from 19 in February, while a net 8 percent report higher sales for the most recent three months versus the prior three months (see bottom chart). Many owners have had to close their doors and others are scaling back operations dramatically.” Small business owners’ outlook is bleak as they wrestle to adjust quickly to rapidly changing economic conditions. The index is now at its lowest level since October 2016.Īccording to the report, ‘The COVID-19 outbreak and regulatory responses to curtail its spread shook the small business sector in March. The latest result ends a run of 39 consecutive months above 100. The SBOI has been signaling recession for over a year, and while one has yet to rear its ugly head it might just be right around the corner.The small-business-optimism index from the National Federation of Independent Business plunged a record 8.1 points to 96.4 in March versus 104.5 in February (see top chart). A net negative 8% of owners reported higher nominal sales in the last three months and 23% of owners reported inflation as their single most important problem in operating their business.Īll of this, combined with low capital investment due to expensive borrowing at high interest rates, has put small businesses in a bind. Adding to labor issues, 36% of business owners reported raising compensation and 23% plan to raise compensation in the next three months. Small business owners that reported job openings they could not fill was at 43%, up three points from August. Small business owners continue to be most concerned about inflation and labor quality. The latest Small Business Optimism Index (SBOI) for September dropped 0.5 points to 90.8, its 21 st consecutive month below the survey’s 49-year average of 98. ![]() economy – at least 2 of every 3 new jobs – are in small businesses. This release is an important one to follow each month as small businesses are quicker to react to a changing economic climate and a large part of the U.S. The series goes back to 1973 (quarterly surveys, monthly starting in 1986) and is released on the second Tuesday of each month. ![]() The National Federation of Independent Businesses (NFIB) collects small business trend data by surveying their membership base on a monthly basis. ![]()
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