Despite the headlines of falling stock market indices, collapsing bond yields, turmoil in Hong Kong, and the escalating trade and currency war fears, small businesses are as resilient and buoyant as U.S. consumers. The latest NFIB Small Business Optimism Index for the July period just registered it second highest reading for 2019 – and rebounded to near 105 level (104.7). The NFIB has reported small business optimism above the 100 mark (level in which businesses feel confident in expanding) for 32 consecutive months (Dec 2016 to present) after being at a contractionary level (below 100) for seven years (November 2009 to November 2016).
The headline, remarks from NFIB President Duggan, and the press release statement take the words right out of the mouth of the late Jim Neighbors (Gomer Pyle): “Surprise, Surprise, Surprise!”
NFIB Small Business Headline for July Period:
Optimism Continues to Defy Expectations
NFIB President Juanita Duggan Remarks on July Survey:
“While many are talking about a slowing economy and possible signs of a recession, the largest economy in the world continues to defy expectations, generating output, creating value, and expanding the economy. Small business owners want to grow their operations, and the only thing stopping them is finding qualified workers.”
The NFIB Small Business Optimism Index (SBOI) is one of those five key metrics I use to gauge the health of the economy – along with: ii) RailTime Indicators; iii) ADP & LinkedIn Workforce employment reports, iv) the Spread between the 2-Yr and 10-Yr Treasury; and v) the Cass Freight Index. Today, the NFIB reported its July survey results.
NFIB Small Business Optimism Posts 2nd Highest Reading
of CY 2019 at 104.7 – 32 Consecutive Mos. >100