Research >> Economics
NFIB Small Business Optimism Index increases to 89.0
The Index of Small Business Optimism gained 0.2 points in September, rising to 89.0. The increase is certainly not a significant move, but at least it did not fall. Still, the Index remains in recession territory. The downturn may be officially over, but small business owners have for the most part seen no evidence of it.
Members of Congress fled with no action on important issues like expiring tax rates, leaving the cloud of uncertainty larger and darker. In response, consumer sentiment fell and owner optimism remained anchored solidly in recession territory. Thus, spending stayed in “maintenance mode”, deterioration of jobs continues, and capital spending remains at historically low rates. Owners won’t make spending commitments when sales prospects remain weak and important decisions such as tax rates and labor costs remain so uncertain.
Posted: October 12, 2010 Tuesday 07:30 AM