·
The November index of small business
optimism gave back most of its October rise and fell 1.0% to 99.7,
according to the National Federation of Independent Business (NFIB).
Nevertheless the figure remained well up from its June low of 96.7.
· During the last ten years there has been a 70% correlation between the level of the NFIB index and the two quarter change in real GDP.
· Respondents expecting
the economy to improve held at a recent high but the percentage of firms
with job openings fell sharply.
· During the last ten years there has been a 72% correlation between the NFIB percentage and the y/y change in nonfarm payrolls.
· The percent planning to raise capital expenditures remained at a firm 31%, about the same as during the last two years.
.The percentage of firms planning to raise average selling prices ticked back up to a still low 22%. The percentage of firms actually raising prices also rose to a low 17%. During the last ten years there has been a 60% correlation between the change in the producer price index and the level of the NFIB price index.
· About 24 million businesses exist in the United States. Small business creates 80% of all new jobs in America.