Record Numbers of America’s Small Businesses Are Boosting Profits
US small businesses increased hiring and profits amid a record-level of optimism in the economy.
The National Federation of Independent Business (NFIB) said its Small Business Optimism Index sustained record-high marks increasing to 104.8 in April, driven by reports of improved profits, the highest in the NFIB Small Business Economic Trends Survey’s 45-year history.
“Never in the history of this survey have we seen profit trends so high,” said NFIB President and CEO. “The optimism small businesses owners have about the economy is turning into new job creation, increased wages and benefits, and investment.”
Reports of capital outlays rose to 61%, indicating that small businesses are confident and strong enough to make investments. Of those businesses making expenditures, 43% are spending on new equipment, while 27% are acquiring vehicles.
In addition, more small businesses are planning capital outlays in the next few months, increasing to 29%.
“There is no question that small business is booming,” said NFIB’s chief economist.
“Consumer spending, the new tax law, and lower regulatory barriers are all supporting the surge in optimism across all small business industry sectors.”
As the difficulty of finding qualified workers continues to be a major obstacle for small businesses, with 22% citing it as their “single most important business problem,” more of this planned spending is expected to go toward training and labor-saving technology.
Businesses are looking for workers in just about every sector of the economy.
And some economic storm clouds could be on the horizon for some small businesses.
When President Donald Trump signed a $1.5-T package of tax cuts at the end of Y 2017, supporters predicted businesses would respond this year with a burst of hiring and investment.
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