NFIB Weekly News

NFIB Weekly News

Leading the News


Small Business Optimism Eclipses Pre-Shutdown Highs

(06/11/2019)

The NFIB’s Small Business Optimism Index indicated that small business sentiment in May increased 1.5 points to 105.0, eclipsing pre-shutdown levels. Sales, business conditions, and expansion expectations all rose. NFIB CEO and President Juanita Duggan was quoted saying, “Optimism among small business owners has surged back to historically high levels, thanks to strong hiring, investment, and sales. ... The small business half of the economy is leading the way, taking advantage of lower taxes and fewer regulations, and reinvesting in their businesses, their employees, and the economy as a whole.” NFIB Chief Economist William Dunkelberg was quoted saying, “Small business owners are demonstrating a continued confidence in the strength of the economy and are betting capital spending dollars on it. ... This solid investment performance is supporting ongoing improvements in productivity and real wages.”


Business Climate


May Job Numbers Drop From April, Unemployment Remains At A Five-Decade Low

(06/11/2019)

In a front-page article, the Washington Post (6/7, A1, Long) reported the Labor Department on Friday announced “the U.S. economy added 75,000 jobs last month, a significant pullback from 224,000 jobs added in April.” To the Post, “The slow growth was the biggest red flag yet that the economy is under strain.” The Post adds that the unemployment rate “remained at a five-decade low of 3.6 percent, but wage growth disappointed, another sign of fading momentum.” However, Council of Economic Advisers Chairman Hassett “said much of the slowdown in hiring in construction can be explained by the torrential rains and flooding that pounded parts of the country.” Hassett conceded that while manufacturing has slowed, but said, “Attributing that to trade right now is tricky because Mexico just started and the China negotiations did only hit a roadblock in May.”


Small Business Marketing


PayPal A Better Option For Small Businesses While Stripe Suits Large Ones, Fundera Says

(06/11/2019)

Fundera (6/8, Shepherd) compared Stripe and PayPal, calling PayPal “the better option for small business given its simple setup and ease of use,” while adding that “Stripe is a good option for larger businesses, as it offers more customization and additional features.” PayPal “offers an oftentimes simpler solution” than Stripe, and has an array of payment solutions include Payflow and PayPal Payouts. Fundera concludes: “All in all, PayPal’s online payment options aren’t as in-depth as Stripe’s, but they are certainly good enough for most businesses.”


Wages and Benefits


2020 Democratic Primary Candidates Unified In Support For Higher Minimum Wage

(06/11/2019)

CNBC (6/9, Pramuk) reported “disagreements over hiking the $7.25 per hour U.S. wage floor have all but vanished in the 2020 Democratic primary,” as “all the leading contenders for the Democratic presidential nomination...have backed a $15 per hour federal minimum wage.” The article added, “Democratic candidates have tossed aside caution about a sweeping nationwide minimum wage hike,” as the “party hopes a more direct action to boost pay will be more appealing than Trump’s approach: leaving minimum wage decisions to states and hoping economic growth will cause pay increases.” CNN said it is a “race that will test whether a strong economy can save a president with a poor approval rating,” and “Democrats see raising the pay floor as one way they can cast themselves as a better alternative to fatten workers’ wallets.”



The information provided is meant for general informational purposes only and does not constitute tax, business or legal advice.