DENVER, Colo., July 8, 2014—Three straight months of a slightly improving economy came to an end today with the release of one of the nation’s most trusted economic barometers that showed a dip in business optimism.
As it does very month, the National Federation of Independent Business, America’s Voice of Small Business, releases its Index of Small Business Optimism, which measures the pulse of the nation’s largest employer group—Main Street entrepreneurs. The NFIB Research Foundation has collected Small Business Economic Trends data with quarterly surveys since 1974 and monthly surveys since 1986. Survey respondents are drawn from NFIB’s membership. The report is released on the second Tuesday of each month. For almost 40 years, NFIB’s Index of Small Business Optimism has been one of the nation’s bellwether economic barometers, used by the Federal Reserve, congressional leaders, presidential administrations, and state legislators and governors across the nation.
“Although the jobs numbers, to some, appear promising, two indicators that I look for first are plans for capital outlay and the response to whether now is a good time to expand, and both of them fell,” said Tony Gagliardi, NFIB’s Colorado state director. “The Optimism Index is a national survey, not broken down by state, measuring mood, and it’s important to stress that a lot of state actions go into fueling a mood. Would you want to expand your business or make a capital outlay in Colorado at the moment? Our Legislature passed a new law making it easier to sue employers, a special session is being considered for the purpose of adding another regulatory layer on top of our mom-and-pop energy companies, and court cases challenging TABOR are not ringing endorsements to run a business in Colorado.”
Added Bill Dunkelberg, NFIB’s chief economist about today’s report, “The only two index components that increased in June were labor market indicators: the percent of owners with job openings and the percent planning to create new jobs in the coming months. While reports of actual net job creation per firm were positive, consumer and business owner optimism remain low, with both spending growth and sales expectations weak. With Election Day months away and no sign of change in Washington, economic growth for the rest of the year will continue to be sub-par. The unemployment rate will fall more due to people leaving the labor force than to jobs being created and fewer hands making GDP.”
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For more than 70 years, the National Federation of Independent Business has been the Voice of Small Business, taking the message from Main Street to the halls of Congress and all 50 state legislatures. NFIB annually surveys its members on state and federal issues vital to their survival as America’s economic engine and biggest creator of jobs. NFIB’s educational mission is to remind policymakers that small businesses are not smaller versions of bigger businesses; they have very different challenges and priorities.
National Federation of Independent Business/Colorado
1580 Logan St. Suite 520
Denver, CO 80203
303-325-6243
