Is the U.S. headed for another recession? For those of us who remember the crash of 2008, looking ahead can cause some concern.
For a glimpse in what we all can expect in the many months ahead, business insiders often turn to the small business optimism index. This index can provide insight into the consumer and industry trends that lead the industry.
Read on to learn more about the small business optimism index and what is can mean for you.
What is the Small Business Optimism Index Exactly?
The small business optimism index has been a research project of The NFIB Research Foundation since 1986. These reports can help you more accurately gauge the trajectory of the small business market.
With this insight, you can effectively dodge the missteps that may plague your competitors. Keeping this information in mind can inform how you order, how you hire, and how you spend your small business’ valuable resources.
What Does the Small Business Optimism Index Cover?
The small business optimism index provides insight into the various factors supporting small business attitudes. These can include capital spending, earnings, inflation, the labor market, and inventories.
These quarterly findings are further supported by the monthly surveys conducted by the NFIB. NFIB compiles quarterly research and conducts monthly surveys to gauge small business attitudes and trends.
What Else Contributes to Small Business Health?
Politics, politics, politics. Regardless of which political candidate you support, the fact of the matter is that small businesses depend on the bills signed into law by elected lawmakers.
Even small changes to trade policies can create huge swings for your business. Additionally, consumer confidence can play a huge role in your sales.
Want more insight into what causes a crash? Huge shifts in the market can happen after something that is widely accepted as fact is revealed to be untrue. The real estate bubble, for instance, is a great example of what can occur when the curtain is raised.
Other factors outside of the business realm can help to predict a downturn in the market. Recently, The New York Times reported that CEO confidence is currently at its lowest levels since 2008.
Lastly, your political affiliation is also likely to play a role in your view of the market. As much as we all would like to believe that our view of politics in unbiased, the research suggests that we are more likely to feel optimistic about the financial landscape if the political party of our choosing is in power.
Know What to Expect
While attitudes about what’s on the horizon may vary, it’s always important to take into consideration the trends unique to your industry. Your unique vantage point can inform your opinion, once you’ve had a chance to review the numbers.
Feeling unsure about the road ahead? Consider speaking to a financial institution that you trust.
You’ll feel more confident traversing the road ahead once you have the security you need. Regardless of market trends, we’ll always be here to help.
To learn more, be sure to visit our website today. We’ll show you what makes us different than the rest.