U.S. small business confidence falls to more than two-year low
Reuters
Published Feb 12, 2019 10:43AM ET
U.S. small business confidence falls to more than two-year low
WASHINGTON (Reuters) - U.S. small business optimism tumbled last month to its lowest level since President Donald Trump's election more than two years ago amid growing uncertainty over the economic outlook.
The National Federation of Independent Business said on Tuesday its Small Business Optimism Index dropped 3.2 points to 101.2 in January, the weakest reading since November 2016.
The index surged after Trump's electoral victory, boosted by his administration's $1.5 trillion tax cut package and deregulation policy. It has declined for five straight months since hitting an all-time high last August, but remains high by historic standards.
Still, the index mirrored other confidence surveys, which weakened sharply last month.
"We believe the apparent boost to the survey data from increased partisanship since the 2016 election is starting to fade," said Jim O'Sullivan, chief U.S. economist at High Frequency Economics in White Plains, New York.
The NFIB said its uncertainty index jumped 7 points to 86 last month, the fifth highest reading in the survey's 45-year history. The rise in uncertainty coincided with the longest partial shutdown of the federal government in history.
The 35-day shutdown ended on Jan. 25 after Trump and Congress agreed to temporary government funding, without money for his U.S.-Mexico border wall.
The NFIB said "there is more talk about recession risk. It noted that small business owners worried "about future sales growth, some weakness in business conditions later in the year and some deterioration in conditions that would be supportive of business expansion."
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.