Small Business Optimism Rises in July, NFIB Reports

Optimism Index Climbs 2.4 Points

Small business optimism rose during July, according to figures released by the National Federation of Independent Business. Despite the upward move, business owners continued to report heightened uncertainty regarding expansion and capital spending plans.

The National Federation of Independent Business reported that its Small Business Optimism Index increased by 2.4 points. This provided a measurable lift for the indicator after previous periods of slow growth.

Contrasting Data From RevSD

However, contrasting economic indicators emerged in a separate report issued by RevSD, LLC on August 14. That document highlighted a competing perspective on the July data.

According to the RevSD report, the index actually declined by 0.2 points down to 92.2. Excerpts from the underlying release noted that owner optimism remained at recession levels.

Worsening Conditions Anticipated

The RevSD analysis noted that more surveyed owners anticipated worsening business conditions over a six-month horizon rather than improvements.

Additionally, more respondents expected lower real sales volumes over a three-month period than higher ones. This dynamic dampened enthusiasm for hiring new workers or purchasing fresh inventory.

Friction Across the Sector

While the National Federation of Independent Business recorded a positive 2.4-point gain, auxiliary analyses like the RevSD review emphasize that job creation plans remain historically low. Only five percent of owners identified the period as favorable for expansion.

Poor Sales Ranked as Top Issue

Poor sales, while eclipsed by other operational worries in certain surveys, still ranked as the top issue for 20 percent of owners surveyed.