Small Business Optimism Index Dipped but Remained Positive in Nov.
Washington, DC, December 8, 2020-The NFIB Small Business Optimism Index declined 2.6 points in November to 101.4 but remain well above the 47-year historical average reading of 98.
Six of the ten Index components declined and four increased. The NFIB Uncertainty Index decreased eight points to 90, still a historically high reading. Owners expecting better business conditions over the next 6 months declined 19 points to a net 8%.
“Small business owners are still facing major uncertainties, including the COVID-19 crisis and the upcoming Georgia runoff election, which is shaping how they’re viewing future business conditions,” said NFIB Chief Economist Bill Dunkelberg. “The recovery will remain uneven as long as we see state and local mandates that target business conditions and disproportionately affect small businesses.”
Key findings include:
* Earnings trends over the past three months declined four points to a net negative 7% reporting higher earnings quarter over quarter.
* Inventory investment plans for the next three to six months decreased seven points from a 48-year record high of a net 12% in October to a net 5% in November.