The August NFIB Small Business Optimism report was released today, August 13. The headline of the Press Release is “Small-Business Optimism? Not So Much.” The subtitle is “July Index Increases Marginally.”
The Index of Small Business Optimism increased .6 points in July to 94.1.
Here are some excerpts from the Press Release that I find particularly notable (but don’t necessarily agree with) :
Sales. The net percent of all owners* reporting higher nominal sales in the past three months compared to the prior three months improved a point, rising to a negative 7 percent. The net percent of owners expecting higher real sales volumes rose 2 points, to 7 percent of all owners. These expectations remain depressed and are not the kind that will generate a lot of new employment or new orders for inventories.
Credit Markets. Credit continues to be a non-issue for small employers, five percent of whom say that all their credit needs were not met in July, unchanged from June and May, and the lowest reading since February 2008. Thirty (30) percent of owners surveyed reported all credit needs met, and 52 percent explicitly said they did not want a loan (65 percent including those who did not answer the question, presumably uninterested in borrowing).
Good Time to Expand. In July, 9 percent characterized the current period as a good time to expand facilities (up 2 points). The net percent of owners expecting better business conditions in six months was a net negative 6 percent, 2 points worse than June’s reading.
Here is a chart of the NFIB Small Business Optimism chart, as seen in Doug Short’s August 13 post titled “Small Business Sentiment: Fractionally Higher In Its Historically Weak Trend” :
(click on chart to enlarge image)
The Special Note summarizes my overall thoughts about our economic situation
SPX at 1685.69 as this post is written