The index rose two-tenths of a point in September after a half-point gain in August.
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The survey by the NFIB, a lobbying group that says it has 325,000 small and independent business owners as members, was a leading indicator of national wage growth until 2012, when the correlation broke down.
15 % of small business owners registered a decrease in their average selling costs within the previous 3 months, which was up 1 point from the month of August.
The four “hard” measures of the index posted mixed results last month.
Outside of the actual numbers in the reports, one notable aspect of this month’s report was the finding that 75% of small business owners are either “significantly” (41%) or “somewhat” (34%) distressed about indecisiveness at the FOMC. Meanwhile, the percent planning capital expenditures over the next three to six months rose from 24 percent to 25 percent. The percentage of those completing the survey saying that the next three months were a “good time to expand” increased from 10 percent to 12 percent, returning to the pace seen two months ago. At the same time, 27 percent said they have positions they are unable to fill right now, a 6 percent increase compared to September 2014. As has been the case for several years now, the one-two punch of Government Red Tape and Taxes are a big problem for small business owners, and both saw increases relative to their readings in August.
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A net 12 percent of owners said they plan to increase staffing, down a point but a level still indicative of job growth, Dunkelberg said. But fewer business owners expect strong sales. This was followed by the quality of labor (16 percent) and poor sales (11 percent). But at a net negative 13 percent, more owners reported profits were lower quarter to quarter than higher.
