Small Business sentiment drops as Federal government legislation lags
According to the National Federation of Independent Business, small business sentiment fell for the month of September from 105.3 to 103. The issue seems to stem from the lack of legislative progress from the federal government. While some have suggested the drop was due to the destructive hurricane forces the NFIB noted that “Respondents in Florida and Texas were no less optimistic than their counterparts in the rest of the country.”
This comes after last month’s record post-recession high when small business owners’ admitted plans to increase spending on capital equipment. According to Market Watch, after “the release of that data, High Frequency Economics’ chief U.S. economist, Jim O’Sullivan, wrote that the index “looks high enough to be consistent with a 5%-plus pace” for real gross domestic product. The latest forecast for third-quarter GDP is half that pace, according to the Atlanta Fed’s GDPNow tracker.”
In September, six of the 10 index components declined, three increased, and one was unchanged.