Though the overall confidence of small business owners registered a slight drop at the end of the year, there were still positive signs in the latest NFIB Index, including upbeat expectations for better economic conditions in coming months. The index slipped two points to 102.7 during December, countering much of November's gain.

 

The Wells Fargo Economic Group reports that "While confidence has waxed and waned for much of the past year, owners generally remain optimistic and expect improved economic conditions in coming months. The Uncertainty Index rose eight points, reflecting the early-December trade negotiations, which ultimately resulted in the Phase I deal, as well as the start of impeachment proceedings."

Six of the 10 subcomponents dropped, including plans to increase employment (-2 points) and plans to raise compensation, which although slipping, remained at one of the highest readings in the survey's history.

On the plus side, owners expect better business conditions in the next three months and higher sales in the that same period as each of those subcomponents advanced 3 points.