Poll: Optimism Among Small-Business Owners Soars on the Trump Effect
$GE, $CAT, $F
US small-business owners are the most optimistic they have been since July 2007, according to the latest Wells Fargo/Gallup Small Business Index.
The overall index is now at 100, up 20 points since November and up 33 points from 1 year ago. This represents the largest quarterly increase in 3 years, Gallup reported.
Owners’ overall ratings of their financial situation, cash flow and revenues improved this Quarter:
Improved revenue: 45% of small-business owners said their revenues increased a little or a lot in the past 12 months, up from 37% in November.
Stronger cash flow: 64% indicated their cash flow over the past 12 months was very or somewhat good, up nine percentage points from 55% in November and the highest rating on this metric since the third quarter of 2007.
Overall financial situation: 71% said their overall financial situation is very or somewhat good, up from 66% in November and the highest percentage for this Question since the Q- 4 of Y 2007, when 72% indicated this.
Part of owners’ improved mindset may reflect their perceptions that regulations will be decreased under the new administration, after President Donald Trump’s executive order calling for a regulatory freeze.
Owners may also be reacting positively to the general rise in economic confidence and record highs on major stock indices, Gallup explained.
Some economists say that when it comes to assessing the genuine potential for the United States economy, confidence among small-business owners is a more grounded and forward-looking indicator.
Companies that employ several to a few hundred workers make up 99% of business in the United States and account for half of private sector employment.
So for all that General Electric (NYSE:GE), Caterpillar (NYSE:CAT) or Ford Motor (NYSE:F) talks about building factories and hiring workers, the $18-T United States economy will not truly move until the burghers in Toledo and other parts of the country start to invest and add jobs.
Other small-business operators agreed.
People said the Barack Hussein-Obama just did not want you to make money. Now we have President Donald Trump who is cutting regulations and taxes. And when businessmen see taxes going down every Quarter, that means they are going to start investing again.