NFIB Small Business Optimism Falls in January


The Small Business Optimism Index fell unexpectedly to 97.9 in January, down 2.5 points. The underlying components, however, are pointing to continued improvement in the labor market.

Expectations Lead the Decline

  • Although the decline in January gave back all of December’s gains, the biggest decline was seen in expectations for a better economy, down 12 points to a net 0 percent. This is a volatile series and does not necessarily reflect current activity, but should be monitored to see if reduced optimism spills over into plans to expand. A net 13 percent of firms reported now is a good time to expand, down slightly from December’s high.

Continued Improvement in Labor Market

  • A net 14 percent of firms reported plans to hire in the next three months. Although this number is down slightly from December’s post-recession high of 15 percent, it is still relatively strong and indicative of positive momentum in the labor market.
  • A solid net 25 percent of firms reported higher compensation in January. Although the percent of firms planning to increase compensation softened, it is still fairly strong at a net 12 percent. 

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD retreats toward 1.0850 on modest USD recovery

EUR/USD retreats toward 1.0850 on modest USD recovery

EUR/USD stays under modest bearish pressure and trades in negative territory at around 1.0850 after closing modestly lower on Thursday. In the absence of macroeconomic data releases, investors will continue to pay close attention to comments from Federal Reserve officials.

EUR/USD News

GBP/USD holds above 1.2650 following earlier decline

GBP/USD holds above 1.2650 following earlier decline

GBP/USD edges higher after falling to a daily low below 1.2650 in the European session on Friday. The US Dollar holds its ground following the selloff seen after April inflation data and makes it difficult for the pair to extend its rebound. Fed policymakers are scheduled to speak later in the day.

GBP/USD News

Gold climbs to multi-week highs above $2,400

Gold climbs to multi-week highs above $2,400

Gold gathered bullish momentum and touched its highest level in nearly a month above $2,400. Although the benchmark 10-year US yield holds steady at around 4.4%, the cautious market stance supports XAU/USD heading into the weekend.

Gold News

Chainlink social dominance hits six-month peak as LINK extends gains

Chainlink social dominance hits six-month peak as LINK extends gains

Chainlink (LINK) social dominance increased sharply on Friday, exceeding levels seen in the past six months, along with the token’s price rally that started on Wednesday. 

Read more

Week ahead: Flash PMIs, UK and Japan CPIs in focus – RBNZ to hold rates

Week ahead: Flash PMIs, UK and Japan CPIs in focus – RBNZ to hold rates

After cool US CPI, attention shifts to UK and Japanese inflation. Flash PMIs will be watched too amid signs of a rebound in Europe. Fed to stay in the spotlight as plethora of speakers, minutes on tap.

Read more

Majors

Cryptocurrencies

Signatures