Small Business Optimism Declines

By Staff Writer December 19, 2018

Small business optimism posted a modest decline in November with a reading of 104.8, while continuing its exceptionally strong two-year trend, according to the National Federation of Independent Businesses’ Small Business Optimism Index. Slightly more than half of the decline was attributable to Expected Business Conditions and Expected Real Sales. Increases in compensation tied a near 30-year high as owners seek to attract more qualified candidates. An increasing percentage of owners reported capital outlays and higher sales.


A net nine percent of all owners (seasonally adjusted) reported higher nominal sales in the past three months, up one point and historically very strong. Thirty percent or more of the owners in construction, manufacturing, retail, and transportation reported quarterly improvements in sales.


Plans to raise compensation rose two points to a net 25 percent, the highest since 1989, a response to persistently high levels of unfilled open positions. Reports of higher worker compensation were unchanged at a net 34 percent of all firms, remaining very strong.

Last modified on Wednesday, 19 December 2018 14:28

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