Economic Snapshot: Small business owners tread lightly amid optimism

While there is optimism among small business owners, it appears to be very cautious optimism. Even so, with readings we haven’t seen in seven years there is reason to be positive. And while little has changed for job openings from the previous month, we are seeing year-over-year growth in the number of jobs available.

Small business optimism index

Small business optimism in the U.S. rose slightly in August to 96.1. The reading is only 0.4 points above the previous month but is the second highest reading since October 2007. Expectations are still glum but improving at a slow pace.

Current job openings moved up two percent from July to 26 and plans to make capital outlays increased four percent to 27. Despite the rise in these plans, the number of small business owners who believe now is a good time to expand fell a percentage point to nine.

And though job openings in small businesses rose this month, plans to increase employment declined three percent to ten. Business owners who expect sales to rise dropped four percent to six.

The National Federation of Independent Business surveys a random sample of 598 small business owners to determine its index.

JOLTS 

As of the last business day in July, there were 4.673 million job openings in the U.S. with a rate of 3.3 percent, according to the Job Openings and Labor Turnover Survey. Little has changed from June’s 4.675 million job openings but it is an increase of 799,000 openings from January and an increase of 857,000 from July 2013.

Hires increased from 4.791 million in June to 4.872 million in July with a rate of 3.5 percent. There were 347,000 more hires in July 2014 compared to the previous year.

Separations, which include quits, layoffs and discharges and other separations, increased marginally from 4.52 million in June to 4.559 million in July. This is up from 4.313 million separations in July 2013.