September was the 18th straight month that the small business optimism index from the NFIB was positive. Does small business optimism matter? According to another study by the NFIB it may well be important.
“Research shows that small-business owners vote. A nationwide survey sponsored by NFIB in 2002 found that amongst small-business owners, 84 percent were ‘extremely’ or ‘very likely’ to vote.”
Specifically, the small business optimism index was up 1.5 points from August, with plans to build inventory leading the way.
“The percent of owners intending to continue stocking their shelves soared to the strongest reading since the mid-1990s. Those actually increasing their stocks climbed a point to a net 2 percent, even with strong sales trends. The net percent of those reporting positive sales rose to 8 percent, adding to a six-month run in reports of higher sales–the strongest since 2000. But expectations for improved sales in the near future ebbed a few points to a net 23 percent–still a solid figure.”
Capital spending was also looking strong among small business owners. This is important economically, as capital spending helps in sustaining a recovery.
“Looking ahead, 23 percent believe now is a good time to expand facilities—up three points from August levels and five points above year-ago figures. More than one-third–36 percent–said they expect business conditions to be hotter six months from now, a hike of four points over August.”
Credit conditions for small business and earnings both remain strong, as well.
Previous
Next