Small-Business Owner Optimism Dips but Still Strong

Small-business owners' business optimism has softened slightly but continues to be strong. The latest quarterly Wells Fargo/Gallup Small Business Index is 132, down from +142 in Q4, 2019, but similar to the +136 in Q3 and +129 recorded in Q2. The index is a measure of owners' present and future optimism -- both of which saw modest declines in the Jan. 3-10 survey. The Small Business Index measures small-business owners' attitudes about a wide variety of factors affecting their businesses. The latest decline is fueled mainly by owners' reports of a lower hiring rate and a decreased anticipation of hiring more employees in 2020. Most other measures of financial health measured by the index remain stable and quite positive.