The U.S. government recently reported robust GDP growth in the second half of 2023, following a 2% increase in the first half of the year. However, small business owners are not experiencing the same level of optimism. The NFIB Small Business Optimism Index (SBOPT) dropped two points in January to its lowest reading since May 2023, well below the 50-year average of 98.
One of the key factors contributing to this decline is the decrease in expected real sales, which fell by 12 points to a net -16% seasonally adjusted. This means that more small business owners anticipate sales declines rather than gains. In addition, the net percent reporting higher employment was negative, with 9% increasing and 14% reducing employment.
