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The NFIB Small Business Optimism Index for August was reported at 100.2, which is a 1.4 increase over July's reading. The NFIB report notes seven of the 10 index components increased while two declined. The Index remains at a high level, a level which was reached following the recession after the technology bubble. The NFIB report also notes the August reading is slightly above the 47-year average for this index.
Importantly, in my view, is the fact 21% of small businesses that responded to the survey are looking to increase employment levels. This is up from a meager 1% in April. I mentioned in a post over the weekend that it is the job market that needs to see improvement at the juncture of the recovery and this small business hiring indication is a positive that can give a boost to further economic growth.
Broadly, the NFIB report is a favorable one and can serve as a catalyst for further economic growth.
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