NFIB index edges higher in September

Small business optimism in the US remained strong in September, data released on Tuesday showed.

The National Federation of Independent Business (NFIB) said its index of small optimism rose from 95.9 in August to 96.1 last month, beating analysts’ expectations for a 95.5 reading.

Plans to hire declined from 13% to 12%, while positions not able to fill slid from 29% to 27%, while optimism over economic trends improved marginally.

The survey found 12% of the respondents believe it is a good time for business expansion, compared with 10% in the month before, while the percentage of businesses planning to increase compensation rose from 13% to 16%.

Meanwhile, the number of firms reporting plans to increase capital spending grew from 24% to 25% and the number of firms expecting a better economy rose from -6% to -4%.

“We view the sustained upward momentum in business sentiment as an important building block toward better private investment in the US,” Barclays’ analysts said.