Small-business optimism up for sixth consecutive month

Small-business optimism inched up again in February, according to a key industry index, reaching its highest point in a year.

The National Federation of Independent Business’s (NFIB) small-business-optimism index reached 94.3 in February, the group said Tuesday, an increase of 0.4 points from the previous month.

That marks the highest point for the index since February 2011, and its second-highest score since December 2007.

Still, NFIB officials cast the latest index as a sign that the economy is recovering at a “glacial pace,” and said small-business confidence is still “historically low.”

“The good news for small-business owners and those watching the economy is that things are getting better,” Bill Dunkelberg, NFIB’s chief economist, said in a news release. “However, at this slow pace of growth and recovery, it could be years before we are again enjoying prosperity.”

The index comes as the economy has shown some positive signs in recent reports.

On Friday, the Labor Department reported that the U.S. economy added 227,000 jobs in February, and also said the economy added more jobs in December and January than previously reported.

Gallup also said Tuesday that its economic confidence index remained at its highest point since January 2008.

But a couple of recent polls have shown that President Obama could be vulnerable on gas prices in this election year, with prices at the pump having risen 30 cents per gallon, on average, over the last month.

Dunkelberg also said gas prices could weigh down small-business growth.

“The price of gasoline is a wild card, and rising energy costs will weigh heavy on the minds of small firm owners,” he said.

In all, NFIB found small-business owners did generally add to their payrolls in February, and that more companies were expecting higher sales. But the group also said that more than 1 in 5 small-business owners still say poor sales are their most pressing issue.

Rep. Sam Graves (R-Mo.), chairman of the House Small Business Committee, said Tuesday that the report shows that the business community is still feeling wary, and urged Senate Democrats to pass the bipartisan jobs bill that cleared the House last week.

“As long as our nation’s most robust job creators feel this type of pessimism about our economy, we will not experience long-term, sustainable growth that will lead us to a full recovery,” Graves said in a news release.

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