Small Business Optimism Inches Higher

In a confirmation of strong levels of job openings in the JOLTS report, small businesses are reporting the most difficulty in finding qualified workers since 2007, pointing to the risk ahead of wage pressures. Boosted by employment, the small business optimism index inched 2 tenths higher in September to a slightly higher-than-expected 96.1. Plans to increase employment are also up, at their best level of the year, while capital outlay plans are also positive. Earnings trends are in the negative column as are expected credit conditions. Overall, this report is moderate though the strength in employment could raise talk of strength for the October employment report.

Recent History Of This Indicator:
The small business optimism index is expected to hold steady at a moderate 95.8 in September. Job openings were up solidly in August and another gain for this component could lift the outlook for the October employment report.