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The
National Federation of Independent Business (NFIB) said on
Tuesday its small business optimism index dipped 0.3 point to a
reading of 92.6 last month, the lowest since February 2014.
It has declined from a reading of 100 in December 2014 and has
pushed further off its 42-year average of 98.
"A 'chartist' looking at the data historically might conclude
that the index has clearly hit a top and is flashing a recession
signal. The April survey will decide whether or not the alarm
should be rung," the NFIB said in statement.
The soft reading fits in with recent economic data on consumer
and business spending as well as wholesale inventory investment
that have suggested economic growth slowed sharply from the
fourth quarter's 1.4 percent annualized rate.
Gross domestic product growth estimates for the first
quarter are currently well below a 1 percent rate.
Four components of the NFIB index rose last month, with the
remaining six declining.
While small business owners were fairly upbeat about business
conditions in the next six months and their attitudes toward
capital spending improved a bit, they was some softening in
their views of the labor market.
Still, labor market indicators remained strong, with a hefty
increase in the share of owners planing to raise compensation.
At the same time, small business owners are more inclined to cut
prices than raise them to boost sluggish sales and weak profits.
"Inflationary pressures remain dormant on Main Street. A
recovery in spending is the only way to create inflation," the
NFIB said.
(Reporting by Lucia Mutikani; Editing by Andrea Ricci)
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