Econoday Economic Report: NFIB Small Business Optimism Index April 10, 2012

2012 Economic Calendar

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NFIB Small Business Optimism Index

Released On 4/10/2012 7:30:00 AM For Mar, 2012

	Prior	Consensus	Consensus Range	Actual
level	94.3	94.8	94.0 to 95.0	92.5

Highlights
Economic indicators in general had been showing rising momentum, that is until Friday's payroll data for March. Now data on small business optimism are also a disappointment for March with the index ending six straight months of improvement with a 1.8 point decline to 92.5. Declines sweep nine of the report's 10 index components including employment plans, sales expectations, and earnings trends. On the positive side, ongoing hiring is solid and access to credit is not a major concern.

Market Consensus before announcement
The NFIB Small Business Optimism Index has risen for six straight months and in February was the highest in a year and the second highest of the recovery. The small business optimism index rose four tenths to 94.3 with gains led by earnings trends and by plans to build inventories. Small businesses also expect their sales to increase.

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

2012 Release Schedule

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

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