US small-business optimism drops to an eight-month low

Bloomberg

Optimism among US small businesses falls in January to an eight-month low as the outlook for economic conditions deteriorated sharply.
The National Federation of
Independent Business index of sentiment falls by 0.5 points to 95, the third-straight decline, the group said. The figure was weaker than the median projection of 96.8 in a Bloomberg
survey of economists.
Weak consumer spending and softer economic growth at end of 2020 weighed on expectations as small-business owners became most pessimistic since November 2013 about the outlook for general business conditions.

“As Congress debates another stimulus package, small employers welcome any additional relief that will provide a powerful fiscal boost as their expectations for the future are uncertain,” Bill Dunkelberg, NFIB chief economist, said in a statement. “The Covid-19 pandemic continues to dictate how small businesses operate and owners are worried about future business conditions and sales.”

Sales expectations and earnings trends fell in January, the NFIB data showed. Plans to add jobs and boost capital spending were unchanged from a month earlier, while the share of owners thinking it’s a good time to expand also held steady.