Expectations for hiring and capital investments ticked up in an August survey by the National Federation of Independent Business, but employers tempered any prospects for an immediate expansion, in part due to uncertainty over the fall elections.
NFIB”™s Small Business Optimism Index gained 1.7 points in August to reach 92.9. August was “a mixed bag,” NFIB said, with sales and earnings trends remaining negative and record levels of owners expressing no interest in loans to finance new projects or hiring.
“In spite of a terrible jobs report from the Labor Department and an increase in the number who view the current period as a terrible time to expand, small-business owners continue to show their resilience; last month they were even a bit more optimistic about improvements in real sales volumes and business conditions,” said NFIB chief economist William Dunkelberg, in a written statement. “However, nothing happened in August to really improve their outlook ”“ economic news was uninspiring and mixed. But it is possible that the uptick in their spirits will forecast of the election outcome and the chance for a favorable resolution of our fiscal dilemma. If election odds start changing, owners (and consumers) may change their minds about spending, hiring and saving, but for now, expect little change in the current course of the economy.”
