The latest monthly survey from the National Federation of Independent Business (NFIB) shows optimism and uncertainty both rising among business owners from July to August.
A Tuesday release outlined that August’s NFIB Optimism Index increased 1.4 points to 100.2, a reading slightly above the index’s historical 46-year average.
Seven of the 10 index components improved, two declined and one was unchanged month-over-month.
Meanwhile, the NFIB Uncertainty Index increased two points in August to 90, the second-highest reading since March 2017. The record reading of 100 for this index was reached in November 2016.
“Small businesses are working hard to recover from the state shutdowns and effects of COVID-19,” stated NFIB chief economist Bill Dunkelberg.
“We are seeing areas of improvement in the small business economy, as job openings and plans to hire are increasing, but many small businesses are still struggling and are uncertain about what the future will hold,” he added.
While state-specific data is unavailable from the monthly survey, NFIB Alabama state director Rosemary Elebash commented, “This virus has taken a tremendous toll on small businesses throughout the state, but as the economy has reopened, our members’ sense of optimism has improved.”
It should further be noted that the NFIB’s latest monthly jobs report showed job creation plans increasing three points to a net 21%, an unprecedented recovery from April’s reading of 1%.
The NFIB wrote on Tuesday, “Construction job growth continues to be strong but owners in the sector are having a particularly hard time finding skilled employees. The manufacturing sector’s employment remained strong but not as strong as seen in previous months. The service sector is the missing link and the key to stronger job growth going forward.”
Read details on the latest survey from the NFIB here.
Sean Ross is the editor of Yellowhammer News. You can follow him on Twitter @sean_yhn
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