Small businesses were less optimistic in January as the National Federation of Independent Business' monthly Small Business Optimism index, published Tuesday, dropped to 93.9 from 95.2 in December.
"Neither the tumultuous stock market nor the Federal Reserve's rake hike had much of an influence on this month's drop in small business owner optimism. Most of the decline was accounted for by expected business conditions in the next six months and the expected real sales," NFIB Chief Economist William C. Dunkelberg said. "These expectations are important determinates of decisions to hire, to expand business operations and to order new inventory, all drivers of the economy."
The 42-year average for the index is 98.
"Last month the sharp increase of owners expecting their real sales to improve did not materialize and this month it dropped by 4 points to 3 percent," the group said in a press release. "Owners expecting better business conditions in the next six months dropped an additional 6 points after plunging 7 points last month, winding up at a dismal net negative 21 percent."
