10 Feb 2015
US small business confidence falling behind 8mth high - KBC
FXStreet (Guatemala) - Analyst at KBC noted that small business confidence weakened.
Key Quotes:
"Unexpectedly US NFIB small business confidence retreated in January from its 8-year high, despite expectations for a further improvement."
"The headline index dropped from 100.4 to 97.9, reversing most of the December uptick. The details show that US small companies were especially less optimistic on the economy."
"The number of firms expecting the economy to improve dropped from 12% to 0%. A decline was also seen in the number of firms reporting: positive earnings trend (‐ 19% from ‐15%), expect higher sales (16% from 20%), increase capital spending (26% from 29%), plans to increase inventory (2% from 5%), good time to expand (13% from 16%) and plans to hire (14% from 15%). The number of firms reporting inventory satisfaction (‐1% from ‐3%) and positions not able to fill (26% from 25%) rose slightly in January, while a stabilization was registered in the number of firms reporting easing of credit conditions."
"Although small firms should feel less impact from the stronger dollar and the lower oil prices should be favourable, sentiment weakened at the start of the new year. The indicator remains however at decent levels, close to its long‐term average, indicating that activity remains moderate."
Key Quotes:
"Unexpectedly US NFIB small business confidence retreated in January from its 8-year high, despite expectations for a further improvement."
"The headline index dropped from 100.4 to 97.9, reversing most of the December uptick. The details show that US small companies were especially less optimistic on the economy."
"The number of firms expecting the economy to improve dropped from 12% to 0%. A decline was also seen in the number of firms reporting: positive earnings trend (‐ 19% from ‐15%), expect higher sales (16% from 20%), increase capital spending (26% from 29%), plans to increase inventory (2% from 5%), good time to expand (13% from 16%) and plans to hire (14% from 15%). The number of firms reporting inventory satisfaction (‐1% from ‐3%) and positions not able to fill (26% from 25%) rose slightly in January, while a stabilization was registered in the number of firms reporting easing of credit conditions."
"Although small firms should feel less impact from the stronger dollar and the lower oil prices should be favourable, sentiment weakened at the start of the new year. The indicator remains however at decent levels, close to its long‐term average, indicating that activity remains moderate."