Input Stories

U.S. small business optimism retreated in January from a more than six-year high (Bloomberg, subscription).

What’s going on: “The National Federation of Independent Business optimism index fell 2.3 points to 102.8 last month. Seven of the 10 index components decreased, led by the steepest monthly decline in capital spending plans since 1995.”

• The NFIB’s uncertainty indicator also rose, by 14 points, its third highest level on record.
• The share of small businesses anticipating easier credit conditions dipped for the first time since August, following the Federal Reserve’s January decision to hold interest rates steady.

However … Owners of small firms “remain largely upbeat about the economy’s prospects. A net 47% of small business owners say they expect the economy to improve in the coming months, hovering near a two-decade high after registering negative readings throughout the Biden administration.”
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