Small Business Optimism Index Declines in September
September’s optimism index gave up 0.8 points, falling to 95.3. At 95.3, the Index is now 5 points below the pre-recession average (from 1973 to 2007). Four Index components improved, six declined. Two declined by 10 points total, accounting for the entire decline in the Index score. Unfortunately, the two that fell drastically were job openings and planned capital outlays, which are directly relevant to GDP growth and hiring.
“Small businesses just can’t seem to get out of second gear. In order for the Index to get back to the average, responses to the 10 Index component questions would have to improve 50 percentage points cumulatively. That’s a lot of ‘positive’ responses to makeup to get back to ‘average’ much less reach a level that means a solid recovery,” said NFIB chief economist Bill Dunkelberg. “A decline in job openings and capital spending plans were primarily responsible for September’s Index decline. Overall, small business owners are still stuck in a rut that has been difficult to escape.
A review of the September indicators is as follows:
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