Widget Image
Follow PPD Social Media
Connect With PPD
Friday, August 16, 2019
HomeNewsEconomySmall Business Optimism Rebounds to Beat Expectations in July

Small Business Optimism Rebounds to Beat Expectations in July

A team of millennial business owners collaborating on an online project using a touchpad tablet in a modern office space. (Photo: AdobeStock/AYAimages)

Uncertainty Index for Small Business Fell 10 Points, Reversing Damage

A team of millennial business owners collaborating on an online project using a touchpad tablet in a modern office space. (Photo: AdobeStock/AYAimages)
A team of millennial business owners collaborating on an online project using a touchpad tablet in a modern office space. (Photo: AdobeStock/AYAimages)

The NFIB Small Business Optimism Index rose 1.4 points to beat expectations at 104.7, as rising uncertainly has been reversed and replaced with resilience. Expectations for business conditions, real sales, and expansion all made solid gains.

PriorConsensus ForecastForecast RangeActual
Small Business Optimism Survey103.3 103.0 101.5  to 105.5 104.7

The Uncertainty Index fell 10 points, reversing a surge in June that reached the highest level since March 2017.

“While many are talking about a slowing economy and possible signs of a recession, the 3rd largest economy in the world continues to defy expectations, generating output, creating value, and expanding the economy,” said NFIB President and CEO Juanita D. Duggan.

“Small business owners want to grow their operations, and the only thing stopping them is finding qualified workers.”

In July, 57% of owners reported capital outlays. Of those cap-ex expenditures, 41% reported spending on new equipment (+1), 25% acquired vehicles (+3), and 16% improved or expanded facilities (+4).

Six percent (6%) purchased new buildings or land for expansion, and 12% kicked out for new fixtures and furniture.

However, the skills gap continues to persist as a major problem.

The NFIB Jobs Report found job creation slowed in July, falling to an average addition of 0.12 workers per firm. A record 26% of small business owners surveyed cited the skills gap — or, difficulty finding qualified workers — as their single most important business problem.

Written by
Staff Writing Group

PPD Business, the economy-reporting arm of People's Pundit Daily, is "making sense of current events." We are a no-holds barred, news reporting pundit of, by, and for the people.

No comments

leave a comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.