The US' National Federation of Independent Business (NFIB) index of small business optimism grew in December to 95.2 from November's reading of 94.8. Intention to employ increased strongly to 15% in December, as compared with 11% in November. The labour market in the US continues to tighten as companies reporting positions not able to currently increased to 28% in December, as compared with 27% in November. Planned compensation growth continues to be at 20%.
Meanwhile, real sales outlook bolstered, rising 8% in December, as compared with a drop of 1% in November. However, the total economic outlook weakened by 14%, as compared with -7%.
"We expect labor market tightness will give way to modest wage increases, which the NFIB survey suggests may already be underway", says Barclays.
