US NFIB Business Optimism Index improved moderately in February

According to the report from National Federation of Independent Business (NFIB), the Small Business Optimism Index improved modestly in February, increasing 0.5 points to 101.7. Views about future capital outlays.  Earnings trends weakened, as a million laid off workers and others affected by the shutdown cut back on spending. The loss of sales falls right to the bottom line. Worker compensation and selling prices were lower in February than they were in January, but job openings rebounded remaining at historically high levels. The Uncertainty Index fell 1 point to 85, a small decline but still showing a lot of residual uncertainty from the government shutdown.

Small business owners who expect better business conditions improved five percentage points and those viewing the current period as a good time to expand increased two points in February. Twenty-seven percent plan capital outlays in the next few months, up one point.  Plans to invest were most frequent in wholesale trades (43 percent), manufacturing (39 percent), construction (32 percent), and agriculture (31 percent). business conditions and the current period as a good time to expand improved as did plans to make