Levels of optimism held roughly steady among small business owners in the month before the presidential election while uncertainty reached an all-time high, according to a new survey from the National Federation of Independent Business (NFIB).
The organization’s Small Business Optimism Index edged up 0.3 points in October to 93.1. The move wasn’t enough to propel the reading out of “pessimistic” and “recessionary” territory, according to the NFIB.
Uncertainty about future business conditions reached its highest point in the history of the NFIB survey. In October, 23 percent of owners said they weren’t sure whether conditions will be better or worse in six months, passing the pre-recession record high of 15 percent, which came during the presidency of Jimmy Carter.
Polling included 2,029 randomly selected NFIB members questioned in October — before this month’s presidential election. But the election doesn’t appear to have done much to reduce uncertainty, according to NFIB Chief Economist William Dunkelberg.
“The election is over and Washington looks much like it did on Nov. 5,” he said in a news release. “The fear of stalemate among the small business community is palpable, as the looming fiscal cliff and the threat of higher costs and more taxes are very real possibilities come January. Until then, not knowing the direction of the economy will always have a dampening impact on spending and hiring.”
The NFIB is a nonprofit organization based in Washington, D.C. It has members in Washington, D.C. and all 50 states.
Contact Seltzer at rseltzer@cnybj.com