US NFIB Survey: January Optimism Index +2.0 to 106.9 - Text

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

of Independent Business' monthly Small Business Optimism index published

Tuesday:

     The Small Business Optimism Index jumped two points to 106.9 in January and

set a record with the number of small business owners saying Now Is a Good Time

to Expand, according to NFIB's Small Business Economic Trends Survey, released

today.

     "Main Street is roaring," said NFIB President and CEO Juanita Duggan.

"Small business owners are not only reporting better profits, but they're also

ready to grow and expand. The record level of enthusiasm for expansion follows a

year of record-breaking optimism among small businesses."

     Now Is a Good Time to Expand registered at 32 percent, the highest level in

the history of the NFIB survey, which began in 1973. Actual Earnings climbed up

11 points from December, the highest level reported since 1988. Plans to make

Capital Outlays jumped up two points, and Plans to Increase Inventories gained

four points.

     "The historically high index readings over the last year tell us small

business owners have never been more positive about the economy," said NFIB

Chief Economist Bill Dunkelberg. "This is in large response to the new

management in Washington tackling the biggest concerns of small business owners

- high taxes and regulations."

     As small business owners struggle to find qualified workers for open

positions, reports of higher worker compensation rose four percentage points to

a net 31 percent, the highest reading since 2000 and among the highest in the 45

years of NFIB's survey. Plans to raise compensation also rose one point to a net

24 percent, the highest reading since 1989.

     "Finding qualified workers now exceeds taxes and regulations as the top

concern for small businesses," said Duggan.

     Optimism Components:        Seas Adj Level %     Change

     PLANS TO INCREASE EMPLOYMENT      20                 0

     PLANT TO MAKE CAPITAL OUTLAYS     29                 7

     PLANS TO INCREASE INVENTORIES      3                18

     EXPECT ECONOMY TO IMPROVE         41                18

     EXPECT RETAIL SALES HIGHER        25               -13

     CURRENT INVENTORY                 -5               -13

     CURRENT JOB OPENINGS              34                13

     EXPECTED CREDIT CONDITIONS        -4                 0

     NOW A GOOD TIME TO EXPAND         32                22

     EARNINGS TRENDS                   -4                48

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

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