Small-business owners' confidence in the U.S. economy rose in
November, its largest month-over-month gain since May 2018, as owners
continued to invest, hire and increase wages, according to the National
Federation of Independent Business.
The NFIB Small Business Optimism Index had a November reading of
104.7, up 2.3 points from the prior month. Overall, seven of the 10
components in the index advanced in November.
The NFIB survey is a monthly snapshot of small businesses in the U.S.,
which account for nearly half of private-sector jobs. Economists look
to the report for a read on domestic demand and to extrapolate hiring
and wage trends in the broader economy.
Much of the index's positive advance in November was led by a 10-point
improvement in earnings, or owners who reported positive profit trends,
the NFIB said.
The NFIB survey results -- based on responses from 500 small-business
owners last month -- showed that owners who believe it's a good time to
expand jumped by six points from a month earlier while those who expect
better business conditions increased by three points.
The Uncertainty Index dropped six points in November to 72, as fears of a possible economic recession subsided.
"Owners are aggressively moving forward with their business plans,
proving that when they're given relief from the government, they put
their money where their mouth is, and they invest, hire, and increase
wages," NFIB Chief Economist William Dunkelberg said in prepared
remarks, referring to the U.S. government's supportive tax and
regulatory environment.
Around 30% of small business owners said they had raised compensation
in November, unchanged from a month ago, while 26% of participants said
they planned to do so in the months ahead.
Small-business owners added an average of 0.29 workers per firm, the highest level since May.
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