Small Business Optimism Index Sees Increase in January 2018

NFIB Small Business Optimism Jumps to 106.9 in January – Stock and Dollar Selloff Resumes Treasuries Rally
Bank of the West Daily Update
Today, the National Federation of Independent Business posted a solid increase in their small business optimism index to 106.9 in January. This is the second highest reading on this small business confidence index in the current expansion and just shy of the 107.5 high recorded last November. Small business confidence remains at high levels not seen since 2003.
The January increase easily beat the consensus forecast looking for 105.3, but settled closer to our forecast of 106.0.  We are currently ranked #2 on Bloomberg for the accuracy of our forecasts on this indicator over the past two years. Gains were seen in seven out of 11 index sub-components in January and 2 were unchanged. More small businesses expect a better economy and reported now was a good time to expand. Higher percentages of small businesses also reported positive earnings trends, increased capital spending, rising net compensation and net compensation plans. However, the percentage planning to hire remained unchanged at 20%.
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