The National Federation of Independent Business’s (NFIB) optimism index fell 1.3 points to 93.9 in January as a result of two important Indices declining. The NFIB says the Index is well below the 42-year average of 98. The market was expecting the index between 93.8 to 95.6 with consensus at 94.9 – versus the actual at 93.9.

NFIB chief economist Bill Dunkelberg states:

Neither the tumultuous stock market nor the Federal Reserve’s rake hike had much of an influence on this month’s drop in small business owner optimism. Most of the decline was accounted for by expected business conditions in the next six months and the expected real sales. These expectations are important determinates of decisions to hire, to expand business operations and to order new inventory, all drivers of the economy.

The labor market continues to show strength that is driven by the core growth in the economy that results from a growing population. But uncertainty continues to cloud the future,” Dunkelberg continued. “The current administration offers little promise that serious economic problems will be dealt with while the avalanche of regulations for small businesses continues.

Overall, it is unlikely that anything will occur to raise the spirits of small business owners and rekindle their fire that is needed to spur economic growth.

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