Small Businesses Are In Foul Mood But Are Hiking Pay At 2007 Pace
Small business sentiment fell in January to its lowest level in nearly two years, but more such firms are boosting pay than at any time since 2007, the National Federation of Independent Business said Tuesday.
NFIB’s small business optimism index fell 1.3 points to 93.9. That’s the lowest since February 2014 and continues a downward trend for more than a year. A net 21% of small business owners see economic conditions worsening, the weakest since late 2013. Small firms should be relatively insulated to global economic headwinds, especially compared to the multinationals in the S&P 500.
ECON90_020916Despite weaker readings on sales, earnings trends and credit conditions, a net 27% of companies raised compensation, up five points from December. That’s the highest since 2007, before the Great Recession.
Minimum wage hikes kicked in on Jan. 1 in 14 states, pushing up labor costs for many employers. But a broader issue is a lack of qualified applications. 29% of small businesses said that they have job openings, the most in the current expansion. 45% of businesses reported few or no qualified applicants.
While NFIB sees capital spending plans holding steady, the overall report jibes with a lack of business confidence that is hurting investment. http://www.investors.com/news/economy/small-businesses-are-in-foul-mood-but-are-hiking-pay-at-2007-pace/
NFIB’s small business optimism index fell 1.3 points to 93.9. That’s the lowest since February 2014 and continues a downward trend for more than a year. A net 21% of small business owners see economic conditions worsening, the weakest since late 2013. Small firms should be relatively insulated to global economic headwinds, especially compared to the multinationals in the S&P 500.
ECON90_020916Despite weaker readings on sales, earnings trends and credit conditions, a net 27% of companies raised compensation, up five points from December. That’s the highest since 2007, before the Great Recession.
Minimum wage hikes kicked in on Jan. 1 in 14 states, pushing up labor costs for many employers. But a broader issue is a lack of qualified applications. 29% of small businesses said that they have job openings, the most in the current expansion. 45% of businesses reported few or no qualified applicants.
While NFIB sees capital spending plans holding steady, the overall report jibes with a lack of business confidence that is hurting investment. http://www.investors.com/news/economy/small-businesses-are-in-foul-mood-but-are-hiking-pay-at-2007-pace/
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I read recently that most small business are operated by their sole proprietor . Perhaps taxes are the reason .