The National Federation of Independent Business (NFIB) on Tuesday released its latest monthly Small Business Economic Trends Survey, with the results boding well for Alabama’s economy as well as the national economy.
In fact, the nationwide survey showed small business optimism posting the largest month-over-month gain since May 2018, rising 2.3 points to 104.7 last month.
NFIB’s optimism index is comprised of 10 total index components, and the spike in November’s total index was bolstered by seven of those components improving. A 10-point improvement in the earnings component led this charge. Additionally, business owners reporting it is a good time to expand increased by six points, and those expecting better business conditions increased by three points.
In more good news, the NFIB’s business uncertainty index fell six points last month to 72, the lowest reading since May 2018.
While the survey is not broken down into state-specific data, NFIB Alabama state director Rosemary Elebash said in a statement, “Our members here are telling us it’s a good time to reinvest in their businesses and add jobs.”
Read more about the survey here.
This came after NFIB released its monthly jobs report last week. That report showed a net 30% of small business owners, seasonally adjusted, raised compensation and 26% planned to do so in the coming months, up four points and the highest level since December of 1989. Job creation jumped last month, with an average addition of 0.29 workers per firm, the highest level since May.
This being said, finding qualified workers remains the top issue for NFIB members. Last month, 26% reported that this is their foremost problem. That number is one point below August’s record high.
The totality of November’s economic news reflects a stark departure from previous months, as speculation about a possible recession was dampening small business owners’ economic outlook. Additionally, NFIB noted that the current focus and noise in Washington, D.C. around impeachment is proving to have little, if any, impact on small business owners.
Sean Ross is the editor of Yellowhammer News. You can follow him on Twitter @sean_yhn
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