The National
Federation of Independent Business (NFIB) announced on Tuesday its Small
Business Optimism Index jumped by 2.2 points to 93.7 in October, following a 0.3-point
drop in the previous month. This represented the highest reading in three months and marked the 34th straight month the
indicator stayed below the 50-year average of 98.0.
Economists had forecast
the index to advance to 91.9 in October.
According
to the report, the October climb in the headline gauge was due to gains in nine
components, led by a measure of small business owners expecting the improvement
in the economy (+7 points) and a measure of small business owners expecting
real sales to be higher (+5 points). Meanwhile, a measure of small business owners planning to
increase employment in the coming months (0 points) was unchanged.
Commenting on
the latest data, Bill Dunkelberg, NFIB Chief Economist, suggested that with the
election in the U.S. over, small business owners will begin to feel less
uncertain about future business conditions. “Although optimism is on the rise
on Main Street, small business owners are still facing unprecedented economic
adversity,” he added. “Low sales, unfilled jobs openings, and ongoing
inflationary pressures continue to challenge our Main Streets, but owners
remain hopeful as they head toward the holiday season.”