WASHINGTON—The National Federation of Independent Business’ small-business optimism index dropped to 97.9 in January from 100.4 in December, which was the index’s highest point since October 2006.
In a statement, the NFIB said the current index indicates that the small business sector is operating in a somewhat “normal” zone. The index was most affected in January by expectations for business conditions in the next six months. The subindex fell 12 percentage points to a 0% reading. Real sales expectations were down four points to 16% and the earnings trends subindex fell four points to -19%.
“Owners are less optimistic about sales growth and business conditions, but plan to keep creating jobs and spending on inventory and equipment at the best levels seen in the expansion,” according to the report.
There is good news in the report, which observed that small businesses added an average of 0.16 employee per firm in the three months ended in January, after December’s reading of 0.20.