Trump Effect? Small-Business Optimism Index Just Rose The Most Since 1980

The National Federation of Independent Business (NFIB)'s index, the leading index of small business optimism, jumped the highest amount since 1980.

According to Bloomberg, the NFIB rose 7.4 points in December to 105.8 from 98.4 in the prior month. Seventy-three (73) percent of the advance was attributed to a more encouraging outlook for sales and the economy.

The NFIB index is based on a survey of 619 small-business owners.

The Figures

The number of small-business owners who believe now is an ideal time to expand stands at three times the average. In addition, the number of companies that plan to boost investments and maintain hiring reflects the pro-business policies of President-elect Donald Trump, which include deregulation, tax reform and infrastructure spending.

Moreover, 55 percent of the small-business owners who responded said they are expecting improved business conditions in the next six months. This marks an increase of 38 percentage points from November and the biggest share since March of 2002.

"We haven't seen numbers like this in a long time," Juanita Duggan, president and chief executive of the NFIB, told Bloomberg. "Small business is ready for a breakout, and that can only mean very good things for the U.S. economy. Business owners are feeling better about taking risks and making investments."

Image Credit: By Gage Skidmore from Peoria, AZ, United States of America - Donald Trump, CC BY-SA 2.0, Wikimedia Commons