The NFIB’s monthly report on small business optimism took a dip in March. But then in April, it seemed to bounce back. The results from March were called a possible “fluke.” However, the results from May seem to indicate a somewhat alarming change. The NFIB Small-Business Optimism Index slipped again in May, down 1.6 points to 98.5 (1986=100), suggesting that the March decline may not have been a fluke, but the beginning of an oscillation in the outlook that is signaling a peak for economic growth. A closer look at the data indicates that any slow down will be mild and rather short-lived, according to the results of the survey.
Any slowdown in small business activity is critical, however. Small business now represents 50% of our GNP.
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