Small Business Optimism Chills in December

Wells Fargo Research Team Wells Fargo

Small business confidence ended 2019 on a soft note, with the NFIB Index falling two points during December. Despite the decline, business owners remain upbeat and see better economic conditions in coming months.

Small Business Confidence Skips a Beat

The index dipped to 102.7 during December, erasing much of November’s sturdy gain. While confidence has waxed and waned for much of the past year, owners generally remain optimistic and expect improved economic conditions in coming months.
The Uncertainty Index rose eight points, reflecting the earlyDecember trade negotiations, which ultimately resulted in the Phase I deal, as well as the start of impeachment proceedings

Owners See Better Times Ahead

Six of the 10 subcomponents dropped, although owners expect better business conditions and higher sales in the next three months, with each of those subcomponents advancing 3 points.
Plans to increase employment fell by 2 points. Hiring plans have cooled as owners continue to cite a shortage of qualified workers as a top challenge. Plans to raise compensation also slipped, but remain at one of the highest readings in the survey’s history.

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Wells Fargo Research Team

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