Small Business Confidence Rises in October

Washington, DC, Nov. 9, 2010 -- U.S. small business confidence rose in October to the highest level in five months, according to the National Federation of Independent Business.

NFIB's optimism index increased to 91.7 from a September reading of 89. Seven of the index’s 10 components rose while three declined. The measure, which averaged 100.6 in the five years before the recession began, has been below 93 since January 2008.

Eight percent of businesses said they plan to hire, unchanged from the prior month. Fewer indicated they plan cut staff, with 13 percent anticipating workforce reductions, down 3 points from September.

A measure of whether firms think this is a good time to expand increased by one point to 7 percent, while 73 percent said it is not, the survey said.

The net share of owners forecasting higher sales rose four points to 1 from minus 3 the previous month.

“The private sector will continue to slog ahead,” William Dunkelberg, NFIB's chief economist, said in a press release.