SURVEY: Small Business Optimism Up Slightly in February
RALEIGH (March 9, 2021) – The NFIB Small Business Optimism Index rose to 95.8 in February, a slight bump from January but still below the 47-year average reading of 98. The NFIB Uncertainty Index decreased five points to 75.
“Small business owners worked hard in February to overcome unexpected weather conditions along with the ongoing COVID-19 pandemic,” said NFIB Chief Economist Bill Dunkelberg. “Capital spending has been strong, but not on Main Street. The economic recovery remains uneven for small businesses, especially those still managing state and local regulations and restrictions. Congress and the Biden administration must keep small businesses a priority as they plan future policy legislation.”
State-specific data is unavailable, but NFIB State Director Gregg Thompson said, “It's been a harrowing 12 months for small business, which is why we're urging the General Assembly follow the federal government's lead and allow employers to deduct Paycheck Protection Program forgiven expenses on their state income taxes. It would ease some of the financial pressure on these businesses and help them get through this ordeal.”
Key findings:
Five of the 10 Index components improved, four declined, and one was unchanged.
Forty percent of owners reported job openings that could not be filled, an increase of seven points from January.
Owners expecting better business conditions over the next six months increased four points to a net negative 19%, a poor reading.
Earnings trends over the past three months improved five points to a net negative 11% reporting higher earnings compared to the January reading.
As reported in NFIB’s monthly jobs report, 56% of owners reported hiring or trying to hire in February, up five points from January. Owners have plans to fill open positions with a seasonally adjusted net 18% planning to create new jobs in the next three months, up one point from January.
Forty percent of owners reported job openings they could not fill in the current period, up seven points. Thirty-three percent have openings for skilled workers and 16% have openings for unskilled labor.
