December was a record month for the outlook of small businesses, according to the The National Federation of Independent Businesses. The NFIB is the country’s largest small business association with over 325,000 members. The NFIB Research Foundation has collected Small Business Economic Trends data with quarterly surveys since the 4th quarter of 1973. They’ve also done monthly surveys since 1986. Survey respondents are drawn from NFIB’s membership.
The survey includes questions like:
In the weeks following the election, the NFIB optimism index jumped from 7.4% to 105.8%. This is a high not seen since the 1980’s. The high jump has everything to do with Donald Trump’s plan to get the economy going again. President Trump campaigned on a platform of Making America Great Again. This included getting Americans back to work, deregulating certain parts of the economy, and discouraging sending jobs overseas through heavy taxes to offenders.
The NFIB data points to some of these factors as the rallying cry for the higher numbers.
The share of business owners who say now is a good time to expand is three times the average of the current expansion, according to the NFIB’s data. More companies also said they plan to increase investment and keep hiring, which reflects optimism surrounding President-elect Donald Trump’s plans of spurring the economy through deregulation, tax reform and infrastructure spending.
The NFIB gathered their data through surveys of 619 small businesses, which represents most of America. 99% of American businesses are under 500 employees.
Donald Trump’s election has also bolstered the outlook for the economy as a whole. As Total Patriot reported, jobs have been saved or added to companies like Ford, Carrier, and Sprint since Trump’s election. The stock market has also reached record highs. The Dow Jones closed in on 20,000 points in late December and hovers within striking distance of it presently.
“We haven’t seen numbers like this in a long time,” Juanita Duggan, president and chief executive of the NFIB, said in a statement. “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.
The Bureau of Labor Statistics indicates that year-over-year for December 2015-2016 has fallen from 5.0% to 4.7% unemployment. This is the lowest December unemployment rate for December since 2006. Low unemployment coupled with optimistic companies indicates a good season coming through for America.