America’s Small-Business Optimism Still Very High
$DIA, $SPY, $QQQ, $VXX
More small-business owners last month said they expect higher sales and think that now is a good time to expand, according to the October NFIB Index of Small Business Optimism, released Tuesday.
“Owners became much more positive about the economic environment last month, which suggests a longer-run view,” said NFIB Chief Economist Bill Dunkelberg.
“In the nearer term, they are more optimistic about real sales growth and improved business conditions through the end of the year.”
The October Index rose to 103.8, up from 103 the previous month. The historically strong performance extends the streak of positive months dating back to last November, when it shot up immediately following the election.
Last month, 4 of the Index components rose last month, 5 declined slightly, and 1 remained unchanged.
Outlook for expansion and sales expectations each jumped 6 points, while job openings increased by 5 points.
The tight labor market got tighter for small business owners last month, continuing a year-long trend. Fifty-nine percent of owners said they tried to hire in October, with 88% of them reporting no or few qualified applicants.
Hiring activity was particularly high in Florida and Georgia, as construction firms are still trying to meet higher demand caused by the recent hurricane.
“Consumer sentiment surged based on optimism about jobs and incomes, an encouraging development as consumers account for 70% of GDP,” said Mr. Dunkelberg. “We expect a pickup in auto spending as people in Texas and Florida continue to replace cars that were damaged in the hurricanes. We expect the same increase in home improvement spending, partly because of the hurricanes, but also because of the skyrocketing price of homes.”
Congress says, that lowering the pass-through tax rate would grow America’s small businesses by encouraging entrepreneurial risk-taking and new hiring.
The House press release crows about providing “Main Street job creators” with “the lowest tax rate on small business income since World War II.”
We believe it.
Tuesday, the US major stock market indexes finished at: DJIA -30.23 at 23409.47, NAS Comp -19.72 at 6737.88, S&P 500 -5.97 at 2578.87
Volume: Trade on the NYSE came in at: 842-M/shares exchanged
- NAS Comp +25.2% YTD
- DJIA +18.5% YTD
- S&P 500 +15.2% YTD
- Russell 2000 +8.4% YTD
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