US NFIB Survey: February Optimism Index +0.7 to 107.6 - Text

     WASHINGTON (MNI) - The following are excerpts from the National Federation

of Independent Business' monthly Small Business Optimism index published

Tuesday:

     Small business owners are showing unprecedented confidence in the economy

as the optimism index continues at record high numbers, rising to 107.6 in

February, according to the NFIB Small Business Economic Trends Survey, released

today. The historically high numbers include a jump in small business owners

increasing capital outlays and raising compensation.

     "When small business owners have confidence and certainty in the economy,

they're able to hire more workers and invest in their businesses," said NFIB

President and CEO Juanita Duggan. "The historically high readings indicate that

policy changes - lower taxes and fewer regulations - are transformative for

small businesses. After years of standing on the sidelines and not benefiting

from the so-called recovery, Main Street is on fire again."

     For the first time since 2006, taxes received the fewest votes as the

number one business problem for small business. The February report shows

several components of the Index reached noteworthy highs. In a sign that small

businesses are confident and expect growth, a net 22 percent of owners are

planning to raise worker compensation and 66 percent reported capital outlays,

up five points from January and the highest reading since 2004.

     Moreover, owners expecting higher real sales rose three points to a net 28

percent, one of the best readings since 2007. Owners also reported higher

nominal sales in the past three months at a net eight percent of all owners. The

net percent of owners reporting inventory increases rose three percentage points

to a net seven percent on top of a six-point rise in January.

     "Small business owners are telling us loud and clear that they're

optimistic, ready to hire, and prepared to raise wages - it's one of the

strongest readings I've seen in the 45-year history of the Index," said NFIB

Chief Economist Bill Dunkelberg. "The fact that several components saw

significant increases tells us that small businesses are flourishing in a way we

haven't seen in over a decade."

     Job creation remained strong in February, as reported in the NFIB February

Jobs Report, released last week. Finding qualified workers remained as the

number one problem for small business owners, surpassing taxes and regulations

which have held the top two spots for years.

     Optimism Components:        Seas Adj Level %     Change

     PLANS TO INCREASE EMPLOYMENT      18                -2

     PLANT TO MAKE CAPITAL OUTLAYS     29                 0

     PLANS TO INCREASE INVENTORIES      4                 1

     EXPECT ECONOMY TO IMPROVE         43                 2

     EXPECT RETAIL SALES HIGHER        28                 3

     CURRENT INVENTORY                 -3                 2

     CURRENT JOB OPENINGS              34                 0

     EXPECTED CREDIT CONDITIONS        -3                 1

     NOW A GOOD TIME TO EXPAND         32                 0

     EARNINGS TRENDS                   -3                 1

     TOTAL CHANGE                                         8

--MNI Washington Bureau; tel: +1 202-371-2121; email: kevin.kastner@marketnews.com

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