The NFIB Small Business Optimism Index in the US fell to 102.7 in December 2019 from 104.7 in November, missing market expectations of 103.1. Seven out of the ten index components dropped, two improved, and one was unchanged. The frequency of plans to raise compensation declined 2 points, still it remains one of the highest readings in the survey’s 46-year history. Three percent of owners reported that all their borrowing needs were not satisfied, unchanged and near a record low. On the other hand, small businesses continued to hire and create new jobs with actual job creation matching November’s reading, the highest since May. An increased number of small business owners reported better business conditions and expect higher nominal sales in the next three months. Overall, the Main Street economic machine continued to push the economy forward. NFIB Business Optimism Index in the United States averaged 98.36 Index Points from 1975 until 2019, reaching an all time high of 108.80 Index Points in August of 2018 and a record low of 80.10 Index Points in April of 1980. source: National Federation of Independent Business
NFIB Business Optimism Index in the United States is expected to be 97.00 Index Points by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate NFIB Business Optimism Index in the United States to stand at 96.00 in 12 months time. In the long-term, the United States Nfib Business Optimism Index is projected to trend around 97.00 Index Points in 2020, according to our econometric models.
United States Nfib Business Optimism Index
NFIB Small Business Optimism Index is a composite of ten seasonally adjusted components calculated based on the answers of around 620 NFIB members. This questions 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, expected credit conditions, now a good time to expand, and earnings trend.