NFIB Index Slips In November

Wells Fargo Research Team Wells Fargo

The National Federation of Independent Business Small Business Optimism Index fell 2.6 points in November, marking the third consecutive drop. The stock market selloff is likely weighing on business owners’ minds.

Small Business Confidence Has Ebbed Slightly

The NFIB Survey of Small Business Optimism has pulled back slightly over the past three months, as business owners have scaled back their expectations for economic growth. The drop may reflect concerns from the recent stock market selloff.
Most of the survey’s components dealing with actual business conditions were little changed. The share of firms stating now is a good time to expand fell 1 point but remains high at 29%.

Sales Expectations Have Been Lowered

The share reporting that sales rose over the past 3 months rose 2 points to 10%, while those expecting sales to rise over the next 3 months fell 4 points to 24%. Both series remains relatively high.
The proportion of firms planning to boost capital spending fell 1 point to 29%, while the share of firms planning to increase staffing was unchanged at 22%. Of the 60% of firms planning or trying to hire, 87% said they had few or no qualified applicants for the job.

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Wells Fargo Research Team

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