The October NFIB Small Business Optimism report was released today, October 8. The headline of the Press Release is “Small Businesses Skeptical About Future; Optimism Dips.” The subtitle is “Too early to measure impact of the ‘shut-down’ but economic outlook is depressed.”
The Index of Small Business Optimism decreased .2 points in September to 93.9.
Here are some excerpts from the Press Release that I find particularly notable (but don’t necessarily agree with) :
Twenty-four (24) percent of owners surveyed in September reported cited regulations and red tape as their No. 1 business problem, 18 percent cited taxes, and 17 percent cited “poor sales”. Only 2 percent reported that financing was their top business problem.
Good Time to Expand. In September, only 8 percent characterized the current period as a good time to expand (up 2 points). The net percent of owners expecting better business conditions in six months was a net negative 10 percent, 8 points worse than August’s reading.
Inflation. Fourteen (14) percent of the NFIB owners surveyed reported reducing their average selling prices in the past three months (down 2 points), and 14 percent reported price increases (down 3 points). The net percent of owners raising average selling prices was 1 percent, down 1 point. As for prospective price increases, 21 percent plan on raising average prices in the next few months (up 1 point), and 2 percent plan reductions (down 1 point). A net 19 percent plan price hikes, up 1 point.
Here is a chart of the NFIB Small Business Optimism chart, as seen in Doug Short’s October 8 post titled “Small Business Sentiment ‘Basically Unchanged’” :
(click on chart to enlarge image)
The Special Note summarizes my overall thoughts about our economic situation
SPX at 1655.45 as this post is written