Small Business Optimism Stumbles but Worker Compensation Ties 30-Year High

One of the pillars of the Trump boom weakened again in November.

Optimism among small-business owners declined slightly in November, the third consecutive monthly decline. TheNational Federation of Independent Business’s Small Business Optimism Index had a November reading of 1.04.8, down 2.6 points from October. Economists had projected the index to hold near the October level.

“Small business owners are enthusiastic about the economy and have demonstrated their optimism by raising wages, creating new jobs, and investing in their businesses throughout 2018,” said NFIB President and CEO Juanita D. Duggan. “Overall, small business owners have shown a historic trend in optimism for their businesses and the economy and continue to be the driving force behind economic growth.”

Slightly more than half of the decline was due to sagging expectations about business conditions and sales, the NFIB said. Increases in compensation tied a near 30-year high. An increasing percentage of owners reported capital outlays and higher sales.