February 2018 News Sources Continue to Tout Small Business Confidence
CNBC.com, USAToday.com and Bloomberg.com continue to report that small business confidence and optimism is looking strong for 2018! Each ran articles this month detailing the reasons for the optimism that has been gleaned from recent surveys.
The CNBC/SurveyMonkey Q1 Small Business Confidence Index rose five points from 57 to 62, the largest quarter-to-quarter move and a record high that the index has seen since this survey began measuring last year. This survey was taken after President Trump signed the Tax Cuts and Jobs Act into law on December 22, 2017.
Business owners’ opinions have risen significantly since 2017’s Q4 survey. As of this quarter, twice as many owners expect changes in tax policy to have a positive rather than negative effect on their businesses. The survey also found that half of small-business owners are now expecting to see tax cuts in 2018. Confidence rose in most demographic groups, especially in small business companies with 5 to 9 employees, where the owners were ages 35 – 44 and 55 -64.
In a Year-End Economic Report for 2017, the National Small Business Association found that more than half of small-business owners feel the national economy is doing better than it was just six months ago (only 43% felt the same in Dec. 2016, and only 20% at the end of 2015).
USAToday.com recently reported on a survey by the National Small Business Association and ZipRecruiter that surveyed 1,633 business owners. Almost 60% questioned in December and January anticipate that the economy will grow in the next 12 months compared to 45% that anticipated that in July 2017! 53% of the owners said their revenue rose over the last 12 months. That marks the first time in ten years that the majority of owners in this survey reported increases. 30% of owners also reported they had added jobs in the past 12 months.
Bloomberg.com reported Feb. 13 that the National Federation of Independent Business survey for February showed optimism among small U.S. companies rose more than forecast just last month. (A previous survey was reported in last month’s blog.) A record number of owners said now was a good time to expand. NFIB’s William Dunkelberg and Holly Wade reported that the new tax law has “produced the most recent boost to small business optimism…. And federal government-related cost pressures continue to abate, offering a more supportive business climate for small firms.”
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