The August NFIB Small Business Optimism report was released today, September 8, 2020. The headline of the Economic Trends report is “Small Business Optimism Index Rebounds, Exceeding Historical Average.”
The Index of Small Business Optimism increased by 1.4 points to 100.2.
Here is an excerpt that I find particularly notable (but don’t necessarily agree with):
Twenty-one percent of owners selected “finding qualified labor” as their top business problem, with 41% in construction where the unavailability of qualified workers is slowing new home production.
The frequency of reports of positive profit trends rose 7 points to a net negative 25% reporting quarter on quarter profit improvement. Among owners reporting weaker profits, 55% blamed weak sales, 8% cited price changes, 4% cited material costs, and 3% cited labor costs. For owners reporting higher profits, 65% credited sales volumes.
Three percent of owners reported that all their borrowing needs were not satisfied. Thirty-one percent reported all credit needs were met and 53% said they were not interested in a loan. A net 1% reported their last loan was harder to get than in previous attempts.
Here is a chart of the NFIB Small Business Optimism chart, from the Advisor Perspectives’ September 8 post titled “NFIB Small Business Survey…“:
Further details regarding small business conditions can be seen in the full August 2020 NFIB Small Business Economic Trends (pdf) report.
The Special Note summarizes my overall thoughts about our economic situation
SPX at 3331.84 as this post is written