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NFIB Small Business Index Rises Again In May; Expectations Improve June 12, 2013 (0 comments)
Merrick, NY—Small business optimism is rising along with consumer confidence. The National Federation of Independent Businesses (NFIB) Index rose 2.3 points in May to 94.4, following a 2.6-point increase in April. It is the highest reading since the recession began in December 2007.
According to a report by the Wells Fargo Economics Group, credit availability is not hampering small businesses’ ability to grow, nor do many cite weaker sales as a key concern. But concerns remain over potentially higher taxes and increased regulation, and even the improved confidence remains lower than in previous expansions. Though small business owners seem optimistic about the economic outlook in general, there is noticeably less improvement in plans for both additional hiring and capital expenditures. The number of existing job openings grew slightly, however. 47% of respondents to the NFIB survey either hired or tried to hire in the past three months, but 38% reported few or no qualified applicants for open positions.
NFIB chief economist Bill Dunkelberg says that while optimism is better than pessimism, the report is far from stellar. “Two good months don’t make a trend, but we can’t have a trend without them, so it’s a start,” he said.
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