The NFIB Research Center has released its quarterly Small Business Economic Trends survey, focusing on the construction, manufacturing, retail, and services industries. The report shows that the Optimism Index increased in all reported sectors except construction.
“Small business optimism rose in all reported industries except for construction,” said Holly Wade, Executive Director of NFIB’s Research Center. “While overall optimism has gone up, more owners are reporting supply chain disruptions.”
The survey was conducted in January, with an overall Optimism Index of 99.3 for that month.
Manufacturing businesses were the most optimistic among the four sectors analyzed, with a reading 4.5 points above the overall index. In contrast, retail owners were the least optimistic, with their index sitting 4.1 points below the all-firms level.
Supply chain issues continue to affect small businesses across industries. Sixty-two percent of small business owners said these disruptions impacted their operations to some degree—an increase of two points from October. Wholesale businesses experienced the highest rate of supply chain disruptions at 80%, while professional services and finance reported lower rates at 32% and 40%, respectively.
Business health ratings improved as well; sixty-eight percent of respondents rated their business health as excellent or good—up five points since October. Professional services had the highest percentage at 79%, while wholesale and agriculture trailed at 55% and 60%.
In construction, optimism dropped by 2.5 points to an index value of 103 but remained above both historical averages and the overall index figure. The decline was largely due to reduced hiring plans and fewer unfilled job openings compared to previous quarters.
Manufacturing saw its optimism rise by 3.6 points to an index of 103.8—driven mainly by improved sales expectations and inventory investment plans.
Retail's Optimism Index edged up slightly by just 0.3 points to reach 95.2; however, this sector continued to lag behind others in terms of outlook.
The services industry recorded a gain of 3.7 points in its Optimism Index, reaching parity with the all-firms average at 99.3 for January. Improved sales expectations contributed most significantly to this rise.
For more details on these findings or access to the full report from NFIB’s quarterly survey, visit their official site.
