Econoday Economic Report: NFIB Small Business Optimism Index March 8, 2011

2011 Economic Calendar

Resource Center » U.S. & Intl Recaps | Event Release Dates | Event Definitions | Today's Calendar

NFIB Small Business Optimism Index

Released On 3/8/2011 7:30:00 AM For Feb, 2011

	Prior	Actual
level	94.1	94.5

Highlights
The economic recovery is beginning to take hold at the small business level, according to the National Federation of Independent Business whose index rose four tenths to 94.5 in February. Details are very positive including gains for hiring and expectations that price cutting is finally coming to an end. Another positive is that small businesses now see their inventories as too low, not too high, which points to a cycle of restocking. Except for housing, economic data are turning higher -- right when a possible oil shock is unfolding.

Definition
The small business optimism index is compiled from a survey that is conducted each month by the National Federation of Independent Business (NFIB) of its members. The index is a composite of ten seasonally adjusted components based on questions on the following: plans to increase employment, plans to make capital outlays, plans to increase inventories, expect economy to improve, expect real sales higher, current inventory, current job opening, expected credit conditions, now a good time to expand, and earnings trend. The baseline of 100 is for the average of the year 1986. A positive percentage change indicates improvement while a negative percentage change in the index suggests a decline in optimism. But the level indicates optimism relative to 1986—a moderately healthy year for economic growth with annual average GDP growth at 3.5 percent. Why Investors Care

2011 Release Schedule

Released On: 1/11 2/8 3/8 4/12 5/10 6/14 7/12 8/9 9/13 10/11 11/8 12/13

Release For: Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov