Tags: small | business | optimism | Gallup

Wells Fargo/Gallup: Small Business Optimism Index Soars to 7-Year High

By    |   Friday, 06 February 2015 09:30 AM

The economy grew 2.4 percent last year, its fastest pace since 2010, and small businesses are apparently reaping the rewards.

The latest Wells Fargo/Gallup Small Business Index registered a seven-year high of 71 last month, up from 58 in November and 45 last January. The index measures small-business owners' views of their present situation and future expectations concerning their financial situation, cash flow, revenue, capital spending, hiring and credit availability.

While the current Index is still below pre-recession levels, it is the highest it has been since January 2008 when the Index score was 83.

The present conditions component climbed to 28 from 21 last quarter, and the future expectations component to 43 from 37.

"This continues the general upward movement seen in the index since it reached its low point in 2010, although it remains below the high points registered in the years prior to the Great Recession," write Gallup's Coleen McMurray and Frank Newport.

"Small business owners' more upbeat views of their operating environments come at a time of generally positive economic trends in economic growth and unemployment."

Lisa Stevens, head of small business at Wells Fargo, stated, "With the economy improving every day, many business owners are seeing stronger revenues and are feeling a renewed sense of confidence and expecting an even better year ahead."

The NFIB Small Business Optimism Survey confirms the Wells Fargo/Gallup data. The NFIB index rose 2.3 points to 100.4 in December, its highest level since October of 2006, with gains in eight of 10 sub-indices.

The advance was led by a sharp increase in the number of owners who expect higher sales. "This could be a breakout for small business," NFIB Chief Economist Bill Dunkelberg said in a statement.

"There's no question that small business owners are feeling better about the economy. If they continue to feel that way 2015 could be a very good year."

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The economy grew 2.4 percent last year, its fastest pace since 2010, and small businesses are apparently reaping the rewards.
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Friday, 06 February 2015 09:30 AM
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