Research >> Economics
NFIB Small Business Optimism Index flat in May to 104.5
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The May Index continues the remarkable surge in small business optimism that started the day after the election. Small-business confidence shot up to near record levels last November and still hasn’t come down. The Index for May matched its strong performance in April of 104.5. The Index has been at a historically high level for six straight months. In May, five of the Index components posted a gain, four declined, and one remained unchanged. Labor market indicators remained strong, capital spending remained high, and reports of improved sales trends also increased in frequency. However, the inventory picture deteriorated a bit with inventory satisfaction and plans slipping a combined 5 points from April. Overall, the outlook remained solid and more consistent with the revised Q1 2017 GDP growth of 1.2 percent.
The small business sector remains poised to do its part to contribute to overall economic growth. The heavy burden of taxes, health insurance and regulations must be eliminated to support their efforts. The New York Federal Reserve estimates second quarter growth at 2.2 percent while the Atlanta Federal Reserve anticipates growth at 3.4 percent. To appreciate the magnitude of that gap, 1.2 percentage points is equal to or greater than the growth of the entire economy in many quarters over the past eight years. Removing the penalties embedded in our tax code and regulatory structure which waste valuable time and hours will do much to speed up the growth rate, making the U.S. a growth leader.
Posted: June 13, 2017 Tuesday 07:00 AM