Small Business Optimism Improves Slightly

The National Federation of Independent Business small business optimism index inched up 0.6 point in July to 94.1, the second highest reading this year.

By ·

Small business optimism has held up relatively well for the past three months, said IHS Global Insight analysts.

In July, small business optimism inched up due to increased optimism on hiring intentions, good time to expand and higher sales. However, small businesses are more pessimistic on the economic outlook, easing of credit conditions, and higher selling prices.

“Interestingly, small business has had a seemingly consistent problem on filling job positions this year, but their plans on hiring have varied. This could be a problem of job matching or wage offers,” said Chris G. Christopher, Jr., IHS Director Consumer Economics.

He added that this report has some good news and some bad news. The bad news is that small business is more pessimistic on the U.S. economy. The good news is that small business intends to hire more people and expects higher sales.

“On balance, the good news outweighs the bad news since small business hires are extremely important to overall job growth and economic expansion,” said Christopher.

Other highlights contained in the report:

●    The National Federation of Independent Business (NFIB) small business optimism index inched up 0.6 point in July to 94.1, the second highest reading this year.
●    The index components for hiring intentions (up 2 points) and higher sales expectations (up 2 points) also moved up.
●    The index components that took a hit in July were higher selling prices (down 4 points), expect a better economy (down 2 points), and easing of credit conditions (down 1 point).

About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at [email protected]

Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Article Topics

All Topics
Latest Whitepaper
B2B Sellers Prefer a Unified Approach for Ecommerce
A new study from Forrester Consulting, commissioned by NetSuite, found that many midmarket, B2B sellers say their ecommerce solutions have contributed to their growth in sales, new customer acquisitions and improved customer relationships.
Download Today!
From the August 2016 Issue
A growing number of low-cost lift trucks offer new avenues for pairing equipment and applications, but less cautious buyers might find that small up-front costs come at a steep price. Selecting the proper lift truck, lift truck tips 2016, Choosing the right Lift Truck
Megatrends in ocean freight
Ocean Cargo Roundtable: What’s in store for 2017?
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Getting the most out of your 3PL relationship
Join Evan Armstrong, president of Armstrong & Associates, as he explains how creating a balanced portfolio of "Top 50" global and domestic partners can maximize efficiency and mitigate risk.
Register Today!
2016 Quest for Quality: Winners Take the Spotlight
Which carriers, third-party logistics providers and U.S. ports have crossed the service-excellence...
Regional ports concentrate on growth and connectivity
With the Panama Canal expansion complete, ocean cargo gateways in the Caribbean are investing to...

Digital Reality Check
Just how close are we to the ideal digital supply network? Not as close as we might like to think....
Top 25 ports: West Coast continues to dominate
The Panama Canal expansion is set for late June and may soon be attracting more inbound vessel calls...