Continued Deterioration In Small Business Optimism

Today's Small Business Optimism Report by the National Federation of Independent Business (NFIB) shows continued deterioration in business owners optimism in January. The Index fell .9 points to 95.0 versus December's reading and taking it below the 47-year average of 98. The quarter over quarter absolute change is a minus 9 points and is the largest change since the -13.4 and -10.1 point change in April and May of 2020.

Also worth noting from the survey is business owners are expecting a worse economy six months from now. This point of view can lead to reduced hiring and investment if this perception becomes a reality.

Below is a table of the 10 components that make up the index and only two improved in January versus December, current job openings and expected credit conditions. It is evident independent business owners optimism is deteriorating and this can have a negative impact on upcoming economic growth.