US: Business confidence remains high - Wells Fargo

The NFIB Small Business Optimism Index dropped in October 0.5 points to 107.4. According to analysts from Wells Fargo, businesses are still inclined to expand their operations if they can find the workers they need.

Key Quotes: 

“Small business owners feel optimistic about the economy and the operating environment for their business. October’s slight dip in confidence may be due to some uncertainty surrounding the mid-term elections. At the current level, small business optimism is consistent with at least 3% real GDP growth.”

“Hiring intentions remain elevated, with 60% of small business owners stating they are trying to hire at least one worker.”

“The persistently tight labor market is pulling compensation costs higher. Of the 60% of small business owners looking to hire, 53% reported they had few or no qualified applicants for the open positions. The difficulty finding qualified workers is the number one challenge for business owners.”