| NFIB Small Business Optimism Index |
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Released On 10/9/2012 7:30:00 AM For Sep, 2012
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Prior | Consensus | Consensus Range | Actual |
| level | 92.9 | 93.3 | 92.0 to 93.8 | 92.8 |
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Highlights
The small business optimism index edged down one tenth to 92.8 which is a level that the National Federation of Independent Business calls recessionary. Employment readings are down as are plans for capital outlays. On the positive side, earnings trends are up with optimism on the outlook for the economy slightly higher.
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Market Consensus before announcement
The NFIB Small Business Optimism Index rose 1.7 points in August to 92.9. Improvement in the economic outlook led the August report followed by a rise in sales expectations and in employment plans. Capital spending plans were also up as were current job openings. On the downside was the assessment of credit conditions and of earnings trends.
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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
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