The June NFIB Small Business Optimism report was released today, June 10. The headline of the Press Release is “Small Business Sentiment – Improves a Bit But Is No Sign Of A Surge.”
The Index of Small Business Optimism increased 1.4 points in May to 96.6.
Here are some excerpts from the Press Release that I find particularly notable (but don’t necessarily agree with) :
NFIB Optimism Index rose 1.4 points in May to 96.6, the highest reading since September 2007. However, while May is the third up month in a row, the Index is still far below readings that have normally accompanied an expansion and there have been similar gains in the past that haven’t panned out in this recovery period. Five Index components improved, one was unchanged and four fell, although not by much.
• Labor Markets. NFIB owners increased employment by an average of 0.11 workers per firm in May (seasonally adjusted), the eighth positive month in a row and the best string of gains since 2006. Seasonally adjusted, 11 percent of the owners (down 2 points) reported adding an average of 3.0 workers per firm over the past few months.
• Credit Markets. Five percent of the owners reported that all their credit needs were not met, unchanged and 1 point over the record low. Thirty percent reported all credit needs met, and 53 percent explicitly said they did not want a loan. Only 3 percent reported that financing was their top business problem compared to 25 percent citing taxes, 20 percent citing regulations and red tape and 12 percent citing weak sales. Owners remain more concerned about taxes, regulations and health insurance costs.
Here is a chart of the NFIB Small Business Optimism chart, as seen in the June 10 Doug Short post titled “Small Business Sentiment: Third Month of Improvement“ :
Further details regarding small business conditions can be seen in the Small Business Economic Trends document as well as the full June 2014 NFIB Small Business Economic Trends report (pdf).
The Special Note summarizes my overall thoughts about our economic situation
SPX at 1951.27 as this post is written