Small business optimism soars in the US (finally)


The NFIB (the largest independent small business body in America) Business Optimism Index in the US jumped to 105.8 in December 2016 from 98.4 in November 2016. This was well above market expectations of 99.6. 105.8 is the highest number in 12 years. 50% of Small business owners expect better business conditions in the next six months (versus 38% in November 2016) and stronger sales (31% vs 20%). NFIB Business Optimism Index has averaged 97.8 between 1975 and 2016. The all time high of 107.70 was reached in 1983. Small business hires over 50% of all Americans and the latest payroll numbers released overnight shows that small and medium sized businesses are feeling confident that deregulations will make life much better for them. Looks to me to be a major boost to ‘confidence’ which has been lacking for so long.

Small firms (1-49) added 62k jobs in Jan.
Medium firms (50-499) added 102k jobs in Jan.
Firms with over 500 employees added 83k jobs

As I have been repeatedly saying, forget the noise in the media, follow the signs of ‘confidence’ being restored in America.


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