|

US: Small business optimism rebounds in October - Wells Fargo

The Small Business Optimism index rose 0.8 points in October, recovering a large part of September’s hurricane-related 2.3-point drop as expectations for sales improved and more business owners feel now is a good time to expand, explained analysts at Wells Fargo. 

Key Quotes: 

“The National Federation of Independent Business (NFIB) Small Business Optimism rose 0.8 points in October to 103.8, essentially regaining a little more than one-third of the prior month’s drop. The September data were likely impacted by Hurricane Harvey and Hurricane Irma, which devastated parts of Texas and Florida – two states where small businesses are particularly prominent.”

“The NFIB survey suggests that the aftermath of the late summer hurricanes is still weighing on small businesses somewhat but the impact is diminishing.”

“The labor market is becoming increasingly tight for many small businesses. While the proportion of business owners stating they plan to add staff in the next three months fell 1 point to 18 percent, the series is running even with its average for the past six months and is near its high for this cycle. Moreover, 59 percent of business owners stated they either hired or tried to hire workers during October. Unfortunately many business owners are having difficulty finding qualified workers.”

“The proportion of business owners that stated the next three months were a good time to expand their business rose 6 points to 23 percent. While that did not bring the series back to its prior high of 27, reached in August, the series remains slightly above its average for the past six months and is consistent with solid economic growth.”

“One of the more significant shifts this past year is the decline in the proportion of firms stating that burdensome regulations are their most important problem. Lessening regulatory headwinds have likely contributed to the uptick in capital spending which may have more room to run.”

Author

Matías Salord

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

More from Matías Salord
Share:

Editor's Picks

EUR/USD stays well offered below 1.1800

The selling pressure on EUR/USD is picking up pace, with the pair slipping decisively below the key 1.1800 level and sliding to fresh two week lows as Wednesday’s session draws to a close. The move lower comes as the US Dollar finds renewed strength after the latest round of US data and the release of the FOMC Minutes. Next of note on the docket will be the US weekly Initial Jobless Claims.
 

GBP/USD reaches multi-day lows near 1.3500

GBP/USD reverses its initial upside momentum and is now adding to previous declines, approaching the 1.3500 region on Wednesday. Cable’s downtick comes on the back of decent gains in the Greenback and easing UK inflation figures, which seem to have reinforced the case for a BoE rate cut in March.

Gold battle to regain $5,000 continues

Gold is back on the front foot on Wednesday, shaking off part of the early week softness and challenging two-day highs near the $5,000 mark per troy ounce. The move comes ahead of the FOMC Minutes and is unfolding despite an intense rebound in the US Dollar.

Australia unemployment rate set to edge up within overall strong labor market

The Australian monthly employment report is scheduled for release on Thursday at 00:30 GMT, and market participants anticipate a modest increase in jobs in January. The Australian Bureau of Statistics is expected to announce that the country added 20K new jobs in the month, while the Unemployment Rate is forecast at 4.2%, up from the 4.1% posted in December.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.

Sui extends sideways action ahead of Grayscale’s GSUI ETF launch

Sui is extending its downtrend for the second consecutive day, trading at 0.95 at the time of writing on Wednesday. The Layer-1 token is down over 16% in February and approximately 34% from the start of the year, aligning with the overall bearish sentiment across the crypto market.