US small business sentiment sinks in December - NFIB
By Michele Maatouk
Date: Tuesday 12 Jan 2021
(Sharecast News) - Small business sentiment in the US unexpectedly deteriorated in December, according to the latest survey from the National Federation of Independent Business.
The small business optimism index fell to 95.9 from 101.4 in November, missing expectations for a reading of 100.3 and marking the lowest reading since May.
NFIB chief economist Bill Dunkelberg said: "Small businesses are concerned about potential new economic policy in the new administration and the increased spread of Covid-19 that is causing renewed government-mandated business closures across the nation."
Ian Shepherdson, chief economist at Pantheon Macroeconomics, said: "The plunge in the NFIB index in the spring was due to the initial Covid shock, but the December index also likely has been pushed down by the defeat of President Trump; indeed, that might be the key factor behind the fall.
"NFIB members were thrilled by the Mr. Trump's victory in 2016, and the headline index jumped by 10.9 points in November and December. The drop in the past two months is 8.1 points, so it's not hard to regard it as the removal of much, though not all, of the Trump premium. The details make for grim reading, with sharp falls in the volatile expectations components - economy, sales, and earnings - accompanied by declines in all the key labour market numbers and four-point drop in capex plans, to just 22."
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