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Small-Business Optimism Surges in November After US Election
Confidence among U.S. small businesses surged in November by the most since the spring of 2009 as companies grew decidedly upbeat about sales and economic prospects after the presidential election, a report from the National Federation of Independent Business showed Dec. 13.
Key Points
• Small-business optimism index climbed to 98.4 (forecast was 96.7), the highest since December 2014, from 94.9.
• Monthly increase of 3.5 points was the biggest since April 2009.
• Expectations for sales and business conditions accounted for 69% of gain.
Big Picture
The jump in optimism among American small-business owners is consistent with recently improved consumer, corporate and financial-market sentiment, likely in anticipation of President- elect Donald Trump’s economic, tax and regulatory policies. NFIB said that, using responses before the Nov. 8 election, its gauge rose just 0.5 point to 95.4. Based solely on post-election responses, the index surged to 102.4. To be sure, while the data showed more small businesses anticipate stepped-up hiring, plans for capital spending were cut back, a trend that continues to restrain the economy.
The Details
• Sales expectations gauge rose by 10 points, the most since March 2014, to 11 in November.
• Hiring plans measure increased to 15 from 10, the sharpest one-month gain since January 2007.
• Index of expected business conditions advanced to 12, the best reading since the end of 2014, from minus 7.
