The Optimism Index rose by 3.4 points in December to 105.1, the second consecutive month above the 51-year average of 98. This is the highest reading since October 2018. Of the 10 Optimism Index components, seven increased, two decreased, and one was unchanged. The Uncertainty Index declined 12 points to 86, as business owners became more certain about economic policies following the election.
A seasonally adjusted net 19% of owners plan to create new jobs in the next three months, up 1 point from November. The percentage of owners thinking it’s a good time to expand was 20%, up six percentage points (points) from the previous month. 35% of all owners reported job openings they could not fill in the current period, down 1 point from November.
A net negative 13% of all owners (seasonally adjusted) reported higher nominal sales in the past three months, unchanged from November. The net percent of owners raising average selling prices was unchanged from November at a net 24% seasonally adjusted. The net percent of owners expecting higher real sales volumes rose 8 points to a net 22%. The frequency of reports of positive profit trends was a net negative 26% (seasonally adjusted), unchanged from November.
2% of owners reported that all their borrowing needs were not satisfied, down 2 points from November. 24% reported all credit needs met (down 2 points) and 65% said they were not interested in a loan (up 3 points). A net 4% reported their last loan was harder to get than in previous attempts (down 3 points).
Read the NFIB report.
