Small Business Optimism Fell In September

Sharp drops in current job openings and capital spending plans were the biggest factor pulling down the small business optimism index in September which fell to 95.3 from 96.1 in August. Other negatives include earnings trends and the outlook for credit conditions. September's report is short on positives which do include, however, sentiment on expansion which, despite the decline in capital spending plans, shows a big improvement.

Recent History Of This Indicator:
The NFIB Small Business Optimism Index indicated that job openings keep rising but not plans to further increase employment, two of the many mixed readings in August's small business optimism report where the headline index was up 0.4 points to a recovery high of 96.1. The component for current job openings rose 2 points in the month to 26, a level second only to the component for capital outlay plans which rose 4 points to 27. But plans to increase employment fell 3 points to 10. And despite the rise in capital outlay plans, those saying now is a good time to expand fell 1 point to 9. Readings on fundamental business conditions were mixed with those expecting sales to rise down 4 points to 6 while earnings trends rose 1 point but stand at a very weak level of minus 17.