Economy, Small Business

Economic Data Roundup (04/12/2016)

4/12/16 12:00 PM

iStock_000009946822_Small.jpgThe only important data on the U.S. economy released this morning is the National Federation of Independent Business’s (NFIB’s) small business optimism index, which ended March at 92.6. This is down from February, worse than economists had expected, and the lowest confidence reading in more than two years. Six of the ten main components that make up the sentiment index deteriorated last month, with the biggest declines being found in current inventories and job openings. Outlooks on the economy, though, improved markedly last month, and more business owners reported plans to increase capital expenditures. Elsewhere, hiring and wage growth at small businesses were flat in March but plans to boost compensation in the next three months rose. The top two problems facing surveyed small business owners were once again taxes and government regulation but “quality of labor” continues to be a growing challenge. Owners also reported being more worried about sales growth last month, which is a bit discouraging since such concerns often lead unemployment. Bill Dunkelberg, NFIB’s chief economist, added that “The small business sector, which historically produced half of our private GDP and served as the “R&D” sector of our economy (this is where new ideas are tested by markets, the proper evaluator, not government), is underperforming, doing little more than operating in maintenance mode.”






Sources: National Federation of Independent Business, Twitter

Post author: Charles Couch