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
Just Released: Understanding Hazmat Transportation Management
The rules and regulations governing the transportation of hazardous materials (hazmat) are complex.
Download Today!
From the July 2017 Logistics Management Issue
E-commerce continues to fuel a boom that’s tempered by overcapacity, rate pressures, sluggish demand and political doubt. The result: “cognitive dissonance” that finds a $1.4 trillion market scratching its head.
2017 Truckload Brokerage Roundtable: Technology continues to connect the dots
Cloud Transportation Management Systems (TMS): Weis Markets streamlines “both sides” of the DC door
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!
EDITORS' PICKS
28th Annual State of Logistics: Into the great unknown
E-commerce continues to fuel a boom that’s tempered by overcapacity, rate pressures, sluggish...
2017 Top 50 3PLs: Investment and Consolidation Maintain Traction
The trend set over the past few years for mergers and acquisitions has hardly subsided, and a fresh...

The Evolution of the Digital Supply Chain
Everyone is talking about terms like digitization, Industry 4.0 and digital supply chain management,...
2017 Salary Survey: Fresh Voices Express Optimism
Our “33rd Annual Salary Survey” reflects more diversity entering the logistics management...