Small business optimism dips ahead of government shutdown
Summary
The NFIB Small Business Optimism index fell to 98.8 in September, reversing the gains posted over the previous two months. Although small firms have generally been downbeat for much of the year, the uncertainty index spiked to the highest level since February, suggesting that increased chances of an impending federal government shutdown may have weighed on sentiment.
On the bright side, hiring plans and current sales continued to improve from a low level, pointing to activity remaining resilient over the past several weeks. That noted, firms lowered their expectations for future sales and fewer reported that now is a good time to expand, showing that higher interest rates, sticky inflation pressures and low visibility on the economic policy front remain challenges.
Author
Wells Fargo Research Team
Wells Fargo
