Tags: small | business | optimism | economic

Small Business Economic Optimism Soars to Near All-Time High

Small Business Economic Optimism Soars to Near All-Time High
(Dollar Photo Club)

Tuesday, 12 December 2017 01:55 PM

Not since the roaring Reagan economy has small business optimism been as high as it was in November, according to the National Federation of Independent Business (NFIB) Index of Small Business Optimism, released Tuesday.

“We haven’t seen this kind of optimism in 34 years, and we’ve seen it only once in the 44 years that NFIB has been conducting this research,” said NFIB President and CEO Juanita Duggan.

“Small business owners are exuberant about the economy, and they are ready to lead the U.S. economy in a period of robust growth.”

The NFIB index gained 3.7 points in November, a sharp increase over what was already a near-record performance the previous month. Eight of 10 components posted gains, including a stunning and rare 16-point gain in "Expected Better Business Conditions" and a 13-point jump in "Sales Expectations."

“This is the second-highest reading in the 44-year history of the Index,” said NFIB Chief Economist Bill Dunkelberg.

“The NFIB indicators clearly anticipate further upticks in economic growth, perhaps pushing up toward four percent GDP growth for the fourth quarter. This is a dramatically different picture than owners presented during the weak 2009-16 recovery.

“The change in the management team in Washington has dramatically improved expectations,” he continued.

Job creation plans increased six points last month, providing more evidence of a strong labor market. The number of owners who said it’s a "Good Time to Expand" rose four points.

“Job creation faded, but hiring plans soared, primarily in construction, manufacturing, and professional services,” said Dunkelberg.

Finding qualified workers has been a persistent problem all year for small business owners, a reliable sign of growing economy. Last month, it was the second most important problem facing small business owners. Only taxes polled higher.

“Small business owners are paying very close attention to what is happening in Washington,” said Duggan. “They continue to list taxes as their number-one problem, but they now have clear expectations that Congress and the President will address that problem.

“As long as Congress and the President follow through on tax reform, 2018 is shaping up to be a great year for small business, workers, and the economy.”

However, there reportedly are some clouds among the optimism.

SmallBizTrends.com reported recently that only 47 percent of small-business owners believe the Trump-GOP tax-reform plan is going to benefit them.

Paychex recently surveyed a group of small business owners to see how they feel about federal attempts to pass major tax reform legislation. Less than half are confident that whatever’s passed will impact their businesses in a positive way, smallbiztrends reported.

“Tax reform is an issue that touches millions of American individuals and business owners, but not all small businesses are impacted in the same way,” said Martin Mucci, Paychex president and CEO, in a company statement.

“As lawmakers continue to debate what the future of a federal tax overhaul might look like, our research reveals small business owners seem to have different levels of interest given the impacts of tax reform on their specific business.”

(Newsmax wire services contributed to this report).

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The National Federation of Independent Business (NFIB) Optimism Index soared past 107, closes in on 1983 record.
small, business, optimism, economic
Tuesday, 12 December 2017 01:55 PM
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