Small Business Optimism Rose to 104.7 in July
Washington, DC, August 13, 2019-Small business optimism rose 1.4 points to 104.7 in July, with seven of ten components advancing, two falling, and one remaining unchanged, according to The NFIB Small Business Optimism Index.
The Uncertainty Index fell ten points, reversing a surge in June that reached the highest level since March 2017.
“While many are talking about a slowing economy and possible signs of a recession, the 3rd largest economy in the world continues to defy expectations, generating output, creating value, and expanding the economy,” said NFIB president and CEO Juanita D. Duggan. “Small business owners want to grow their operations, and the only thing stopping them is finding qualified workers.”
In addition to improvement in expectations for business conditions, real sales, and expansion, key findings from the July index include:
* Small business owners’ plans to create new jobs and make capital outlays advanced and earnings trends improved, supported by a solid improvement in sales trends.
* Plans to order new inventories posted a solid gain.
* After surging last month, reports of higher average selling prices stabilized, with no evidence of a pickup in inflation.
* Credit conditions remain very supportive, interest rates on loans are historically low, and there are few complaints about credit availability.
“Contrary to the narrative about impending economic doom, the small business sector remains exceptional. This month’s index is a confirmation that small business owners remain very optimistic about the economy but are being hamstrung by not finding the workers they need,” said NFIB chief economist William Dunkelberg.