Small Business Optimism Down a Point in February

Nashville, TN, March 9, 2016-- The February Index of Small Business Optimism fell 1 point from January to 92.9. 

None of the ten Index components posted a gain: six posted small declines, and four were unchanged. 

Overall, this was a “ho hum” outcome, confirming that the small business sector is not headed up with any strength, just treading water waiting for a good reason to invest in the future. 

Spending and hiring plans weakened a bit as expectations for growth in real sales volumes fell. 

Earnings trends worsened a bit as owners continued to report widespread gains in worker compensation while holding the line on price increases (more firms cut prices than raised them). 

The political climate continued to be the second most frequently cited reason for the current period being a bad time to expand.