The National Federation of Independent Business Small Business Economic Trends Report optimism index increased marginally in February, but continued to provide signals of a stronger-than-perceived economy.
“There is no credit crunch in sight, and there are many unfilled jobs,” said NFIB Chief Economist William Dunkelberg. “But the economy is plagued by a dismal outlook, rising inflation and, contradictorily falling employment.” The index rose to 92.9, an improvement from last month’s reading of 91.8, which was the lowest since January 1991.
In February, small business owners reported reducing employment an average of .27 employees per firm. Twelve percent of the owners increased employment by an average of 3.2 workers per firm, and 15 percent reduced employment an average of 4.3 workers per firm. Forty-six percent of the owners hired or tried to hire, up a point from January but down 11 points from last September. Seventy-eight percent of those trying to hire reported few or no qualified applicants for the job openings they were trying to fill. For owners trying to hire new workers, labor markets remain tight.
