NASHVILLE, Aug. 14, 2018— The NFIB Small Business Optimism Index has marked its second highest level in the survey’s 45-year history at 107.9, rising to within 0.1
point of the July 1983 record-high of 108.
The
July 2018 report also set new records in terms of owners reporting job
creation plans and those with job openings. A seasonally-adjusted net 23
percent are planning to create new jobs, up three points from June.
Thirty-seven percent of all owners reported job openings they could not
fill in the current period, a one-point increase from June.
“Small business owners are leading this economy and expressing optimism rivaling the highest levels in history,” said NFIB President and CEO Juanita Duggan.
“Expansion continues to be a priority for small businesses who show no
signs of slowing as they anticipate more sales and better business
conditions.”
State-specific data is unavailable, but NFIB State Director Jim Brown
said, “I think the numbers show that our members are feeling good about
the direction of the country, so they're more comfortable when it comes
to staffing up and buying new equipment and growing their businesses.”
A
net eight percent of all owners (seasonally adjusted) reported higher
nominal sales in the past three months compared to the prior three
months. July is the eighth consecutive strong month of reported sales
gains after years of low or negative numbers. A net 35 percent of
owners expect better business conditions, ticking up two points from
June.
Additional July highlights include:
- The
percent of owners citing the availability of qualified workers as their
number one business problem landed one point below the record high.
- Reports of compensation increases remained strong.
- Capital
spending maintained a respectable pace but did not display the
exuberance of its fellow indicators, although spending plans did post a gain.
- Plans to add to inventory holdings were strong as strong sales continue to deplete stocks.
- Profits continued to perform, and more firms raised prices, something that is easier when demand is strong.
“Small
business owners have never been so optimistic for so long, helping to
power the second longest expansion in history,” said NFIB Chief Economist Bill Dunkelberg.
“Despite challenges in finding qualified workers to fill a record
number of job openings, they’re taking advantage of this economy and
pursuing growth.”
Fifty-nine
percent reported hiring or trying to hire (down four points), but 52
percent (88 percent of those hiring or trying to hire) reported few or
no qualified applicants for the positions they were trying to fill.
Twenty-three percent of owners cited the difficulty of finding qualified
workers as their single most important business problem (up two
points), one point below the 45-year record high.
Top Stories