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NFIB small business confidence optimism declines after two strong months

FXStreet (London) - The US National Federation of Independent Business (NFIB) Small Business Optimism Survey for January slipped 2.5 points to 97.9 with seven components dropping, one unchanged, and two slightly increasing. Still, the Index shows the small business sector is operating in an ordinary fashion.

Commenting on the report, Bill Dunkelberg, NFIB Chief Economist said: “November and December readings were very strong, possibly from post-election euphoria. January’s decline was mostly due to owners being less optimistic about business conditions, not spending and hiring plans.

“Regulation interference and taxes trump the list of concerns for small businesses while inflation risks and credit availability and costs are at the bottom. Only a net three percent of owners reported raising average selling prices.

“Even though there is a decline in optimism, the small business sector is operating in a somewhat normal zone. The increase in the percent of owners reporting hard to fill job openings is very good news.”

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