Small Biz Optimism Near Record High But Down Slightly in May
Washington, DC, July 10, 2018-The Small Business Optimism Index posted its sixth highest reading in survey history for the month of June, at 107.2, down 0.6 from May. Since December 2016, the Index has averaged an unprecedented 105.4, well above the 45-year average of 98 and rivaling the all-time high of 108.0 in July 1983.
“Small business owners continue to report astounding optimism as they celebrate strong sales, the creation of jobs, and more profits,” said NFIB president and CEO Juanita Duggan. “The first six months of the year have been very good to small business thanks to tax cuts, regulatory reform, and policies that help them grow.”
Highlights from the June report include:
* Owners reported some of the strongest nominal sales in years.
* Plans to invest in additional inventories advanced solidly.
* Plans to create new jobs posted a solid gain and the percent of owners with open positions tied the record high.
* Reports of compensation increases remained historically high and finding qualified workers easily held on to the top spot in the “single most important business problem” list.
A net 10% of all owners (seasonally adjusted) reported higher nominal sales in the past three months compared to the prior three months, down five points but still one of the strongest readings in years. June is the seventh consecutive strong month of reported sales gains. Reports of sales increases were most frequent in manufacturing and the wholesale trades.
“There was a fractional decline in the Index from May to June, statistically insignificant. Small business owners are already seeing their bottom lines grow due to strong sales and regulatory relief and the new tax law is expected to push profits higher as the year progresses,” said NFIB chief economist Bill Dunkelberg.