By Robert Laurie ——Bio and Archives--December 13, 2016
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Small-business owners' optimism improved to its highest level in eight years after the 2016 presidential election. The latest Wells Fargo/Gallup Small Business Index, which measures the optimism of small-business owners, increased to +80 in mid-November from +68 in July. The November index represents the highest optimism reading since January 2008, when the index was at +83. Increases in small-business owners' optimism about the future, rather than their opinions of their present situations, are largely behind the increases in the overall index. Many of their assessments of their present expectations are down a little, while future expectations rose on all six components of the index.
- The percentage of small-business owners expecting company revenues to increase over the next 12 months rose from 48% to 58%.
- Similarly, cash flow expectations are up slightly, from 65% to 70%.
- Owners' view of future capital spending is also higher, with 35% in the current survey expecting to increase spending compared with 25% in the third quarter.
- Expectations about adding jobs rose from 21% in the third quarter to 36% in the fourth.
- Ease of obtaining credit is also up -- from 37% in the third quarter to 44% in the latest survey.
These numbers have nothing to do with Obama. It's all about the plans Trump announced on the campaign trail. If I had to pinpoint it, I'd say the twin promises of tax reform and deregulation have over-burdened business owners rejoicing. ...That's what electing an unabashed pro-business capitalist will do for you. It's time to take the gloves of the U.S. economy.Small-Business Owners Upbeat About New President and Congress
Overall, small-business owners are significantly more positive than negative about the prospect of the newly elected president and Congress. One-half (51%) of small-business owners think the actions of the new president and Congress will make their company better off, while 17% expect to be worse off and 26% feel the upcoming actions in Washington will have no impact on their business. Similarly, 61% of small-business owners believe the new president will focus on issues important to them as owners, while one-third predict he will not.
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