The National Federation of Independent Business (NFIB) Small Business Confidence Index fell to a 2018 year low last month after rhetoric between the US and China reached a fever pitch. With President Trump conceding that new tariffs against his rival may not be a good idea, we can most likely expect small business optimism to increase in April.
In addition to sentiment, “expansion plans and sales expectations also eased, pushing the index of small-business optimism to a five-month low of 104.7” according to the NFIB. This follows the second highest confidence survey in 45 year high during the month of February.
Despite the March failings, including eight of the 10 survey components decreasing, “the index remains near a record and the report contained some promising aspects about the economy. A measure of earnings trends was the second-best since 1987 and a greater share of small-business owners reported higher average selling prices.”
Everything is relative in today’s market and despite its drop, we are still at record levels in terms of an American economy.