The National Federation of Independent Business says its small business optimism index fell in March to 104.7, down from 107.6 in February, as fewer business owners said they expected better business conditions and increased sales.
The share of small business owners expecting better business conditions fell 11 points to 32%, while the share expecting sales increases fell to 20%. NFIB notes both components, however, remain at historically high levels. The index measures the confidence of small business owners according to a 10-category index.
“Although expected sales and expected business conditions posted large declines, it was from historically high levels and this still left the overall Index reading among the 20 best in survey history,” NFIB Chief Economist Bill Dunkelberg says in a statement. “Hiring and spending on new buildings and land acquisition remained at strong levels, a good sign of confidence in economic prospects.”
Still, small business owners have eased up on plans to expand. That component declined 4 points to 28%. Twenty-six percent of small business owners are planning a capital outlay project in the next few months, down three points since February. Most capital outlay plans were in the manufacturing sector, where there is a demand for productivity enhancing investments.
State-specific data was not available, but Louisiana NFIB Director Dawn Starns says small-business owners are upbeat.
“They really appreciate Washington’s strategy of reducing unnecessary regulations and enacting historic tax relief,” she says in a prepared statement.
