The National Federation of Independent Business (NFIB) "Small Business Optimism Index" rose one point in September to 97.3, although it is still below its historical average for 17 or the past 18 months. Optimism components include (1) plan to increase employment; (2) plan to increase capital outlays; (3) plan to increase inventories; (4) expect economy to improve; (5) current job openings; (6) expected credit conditions; among others.
Many small business owners are looking to fill jobs, but are challenged by the applicant pool. A seasonally adjusted net 14% of small business owners plan to create new jobs over the next three months; 57% said they hired or tried to hire new workers, up four points from August, but 84% of the total reported few or no qualified applicants. 75% of the reported payroll jobs were in medical care, education and government, industries not dominated by small firms, where the hiring horizon remains weak.
Capital spending also breathed some life in September, where the frequency of reported capital outlays over the past six months rose two points to 60% of all firms. 45% of small businesses bought new equipment and 23% acquired vehicles. 29% of all small businesses plan to make capital expenditures over the next few months, up two points.
NIFB economists offered that "the NFIB indicators suggest that owners have seen the bottom and are expecting the economy to gradually improve in the months ahead."
Shivonne Byrne, Innuity CMO
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