Small business optimism slipped a bit in December, but remained at historically lofty levels, as the National Federation of Independent Business' Small Business Optimism index dipped to a reading of 104.4 from 104.8 in November.
“Unfilled jobs and the lack of qualified applicants continue to be a primary driver, with job openings setting a record high and job creation plans strengthening,” according to the release.
"Optimism among small business owners continues to push record highs, but they need workers to generate more sales, provide services, and complete projects," said NFIB President and CEO Juanita D. Duggan. "Two of every three of these new jobs are historically created by the small business half of the economy, so it will be Main Street that will continue to drive economic growth."
“Reports of higher worker compensation remained near record levels and inventory investment plans surged,” according to the release. “Expected real sales growth and expected business conditions in the next six months, however, accounted for the modest decline in the Index.”
"Recently, we’ve seen two themes promoted in the public discourse: first, the economy is going to overheat and cause inflation and second, the economy is slowing and the Federal Reserve should not raise interest rates," said NFIB Chief Economist Bill Dunkelberg. “However, the NFIB surveys of the small business half of the economy have shown no signs of an inflation threat, and in real terms Main Street remains very strong, setting record levels of hiring along the way.”
