Small Business Optimism Bounces Back

A solid gain in job openings and a solid bounce back for earnings trends helped lift the small business optimism 4 tenths to 95.9 vs Econoday expectations for 96.0. The index shows no immediate effect from troubles in China and global volatility. Hiring, capital spending and inventory investment plans firmed slightly, collectively adding 2 points. But the two outlook components collectively declined 4 points in readings that do not point to a big second-half finish for the economy.

Recent History Of This Indicator: There may be a lot of turmoil underway in the global markets, but forecasters see the small business optimism index rising 6 tenths in August to 96.0. This report has been mostly positive and has been pointing to second-half strength for the economy. And small businesses have been saying they have job openings that are hard to fill, in line with the shrinkage underway in the available labor force.