NFIB Small Business Index: A New Recession for Main Street?
Economic data have been conflicting of late, but there is one consensus in the data that is clear: the small business economy did not recover from recession, and looks like it’s back in recession territory. There are many indicators we use for small business but one that is watched often is that of the NFIB. It is published monthly and has a long history. US government data focuses attention on the largest businesses because they represent big chunks of the economy and report some kind of data, especially payroll data, with great frequency. Think of it as counting whales rather than minnows. Their recent analysis said “The small business sector... is underperforming, doing little more than operating in maintenance mode. Slow economic growth is now just a result of population growth, more haircuts, retail customers, health care patients, etc. But there is no exuberance, no optimism and not much hope, the numbers make it clear.” Economies stuck in +2% growth mode tend to do that.
Economic data have been conflicting of late, but there is one consensus in the data that is clear: the small business economy did not recover from recession, and looks like it’s back in recession territory. There are many indicators we use for small business but one that is watched often is that of the NFIB. It is published monthly and has a long history. US government data focuses attention on the largest businesses because they represent big chunks of the economy and report some kind of data, especially payroll data, with great frequency. Think of it as counting whales rather than minnows. Their recent analysis said “The small business sector... is underperforming, doing little more than operating in maintenance mode. Slow economic growth is now just a result of population growth, more haircuts, retail customers, health care patients, etc. But there is no exuberance, no optimism and not much hope, the numbers make it clear.” Economies stuck in +2% growth mode tend to do that.
