WASHINGTON, D.C. — The National Federation of Independent Business (NFIB) says its Small Business Economic Trends (SBET) report optimism index increased marginally in February, but continued to provide signals of a stronger-than-perceived economy.
"There is no credit crunch in sight, and there are many unfilled jobs," says NFIB chief economist William Dunkelberg. "But the economy is plagued by a dismal outlook, rising inflation and, contradictorily falling employment." The Index rose to 92.9 (1986=100), an improvement from January’s reading of 91.8, which was the lowest since January 1991. In February, small business owners reported reducing employment an average of .27 employees per firm (seasonally adjusted). Twelve percent of the owners increased employment by an average of 3.2 workers per firm, and 15 percent reduced employment an average of 4.3 workers per firm. Forty-six percent of the owners hired or tried to hire, up a point from January but down 11 points from September 2007. Seventy-eight percent of those trying to hire reported few or no qualified applicants for the job openings they were trying to fill. For owners trying to hire new workers, labor markets remain tight. Twenty percent (seasonally adjusted) reported unfilled job openings, down four points from January (the 34-year average is 22). Twelve percent of owners reported that the availability of qualified labor was their top business problem, up one point from January. "A recession mentality has not yet settled into labor market activity," Dunkelberg says. The frequency of reported capital outlays over the past six months was unchanged at 58 percent of all firms. Forty percent reported spending on new equipment (down two points), 24 percent acquired vehicles (up a point), 15 percent spent money for new fixtures and furniture (up three points), and 13 percent improved or expanded their facilities (unchanged). Six percent acquired new buildings or land for expansion. NFIB’s Small Business Economic Trends is a monthly survey of small-business owners’ plans and opinions. Decision-makers at the federal, state and local levels actively monitor these reports, ensuring that the voice of small business is heard. To download a PDF of the report, click here. | 