Small Business Optimism and the NFIB
According to new findings released this week, the NFIB’s September Small Business Optimism Index increased 3.8 points in September to 104.0 – nearing pre-COVID levels and higher than any level between 2010-2015. The index is the result of monthly and quarterly surveys of NFIB’s small business members who represent some of the businesses most hurt by state and local shutdowns in response to the global pandemic.
Some of the other factors in the index that rose in September include: plans to increase employment, plans to make capital outlays, plans to increase inventories, expect economy to improve, expect real sales higher, current inventory, current job openings, now a good time to expand and earnings trend.
While many small businesses are experiencing improvements as their states reopen, others are still dealing with uncertainty amid state and local pandemic restrictions. The NFIB noted that while the Optimism Index rose to historically high levels, its Uncertainty Index increased by 2 points to 92 (up from 75 in April).
As the United states and the rest of the world recovers from the pandemic, small businesses are poised to lead the way. State governments can provide businesses regulatory certainty going forward and make permanent many of the temporary reforms put in place during the height of the pandemic. Each small business represents an engine of creation, providing services to consumers and employment opportunities to local communities throughout the country.
The NFIB report comments that, “We are experiencing the shortest recession in modern history, starting in March or April and ending no later than September.”
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