US: Small business optimism falls modestly in March - Wells Fargo

Analysts from Wells Fargo, explained that the NFIB small business optimism fell modestly during March and they see signals that wage pressures are heating up.

Key Quotes: 

“Small Business Optimism fell a slight 0.6 points to 104.7 in March. A sizable drop in owners’ sales expectations outweighed modest gains in capital spending, actual earnings and hiring plans.”

“Notably, most of the March survey data were collected before Congress failed to pass the healthcare bill, suggesting that optimism might falter in the coming months.”

“Nearly one-third of small business owners reported job openings were hard to fill in March. As a result, more owners are increasing compensation to attract and retain workers. A net 28 percent of owners reportedly raised workers’ compensation, which marks the second-highest reading since mid-2007.”