The National Federation of Independent Business Index of Small Business Optimism fell 1.6 points in March to 81.0 (1986=100), making March the second-lowest reading in the 35-year history of the NFIB survey. Two of the index components improved and eight declined, but nothing in the survey indicated a signal that the economy is improving.
Small business owners have yet to be impressed by some recent slightly encouraging economic news. They remain skeptical, unwilling to commit to more spending or hiring until they see more customers in their stores.
The hard components of the index, those measuring owner spending and hiring plans, actually reached a survey record low.
“At this point, it is not clear that we have hit a quarterly bottom in the index, and we can only hope for a reversal and subsequent expansion led by the small business sector,” said NFIB Chief Economist William Dunkelberg. “There are signs that the economy is bottoming in the reports of sales, housing starts and auto purchases, but they were not strong enough in March to lift the spirits of small business owners.”