US: Business Optimism dropped in June - Wells Fargo

The Small Business Optimism Index dropped 0.9 points in June. According to analysts from Wells Fargo, fading hopes of a significant tax and regulatory reform affected the index. 

Key Quotes: 

“The National Federation of Independent Business (NFIB) Small Business Optimism Index fell 0.9 points in June to 103.6. The index had been largely unchanged for the past three months and has averaged 104.8 through the first half of 2017. Small business optimism has held on to most of the jump that took place following the presidential election, but expectations for meaningful tax reform and regulatory reform have eased back a bit, as the political wrangling looks much like it had in previous administrations.”

“While business owners are still generally upbeat, the proportion expecting economic conditions to improve has fallen back from a high of 50 hit right after the election to just 33 percent in June.”

“Too much should not be made out of June’s decline in small business confidence. The survey can be volatile on a monthly basis and the three month average for the overall index and most key components continue to point toward improvement.”

“One of the most significant changes for small business owners this year has been the difficulty in finding and holding onto qualified workers. The proportion of small business owners stating that labor quality issues were their most pressing problems has steadily increased over the past three years.”