Small business optimism dipped slightly in January, but remains above its long-term average.
The National Federation of Independent Business reports its Small Business Optimism Index fell 0.2 points to 99.3. That’s still above the 52-year average of 98. Of the 10 components that make up the index, three increased and seven declined. The largest gain came in expected real sales volume, which rose 6 points.
NFIB Chief Economist Bill Dunkelberg says while the nation’s gross domestic product is rising, many small businesses are still waiting to see stronger economic growth. He says more owners are reporting improved business health and anticipating higher sales.
The group’s Uncertainty Index rose 7 points to 91, driven largely by owners questioning whether now is a good time to expand.
NFIB Iowa State Director Logan Shine says agriculture and manufacturing depend on stability, adding that taxes remain a top concern for 18% of owners nationwide.
The report also highlights a new Small Business Employment Index, which currently sits at 101.6, about 1.5 points above its historical average, signaling what NFIB calls a balanced labor market.
