Roughly 32% of U.S. small business owners believe the growing national economy makes now the right time to expand their companies, according to the latest National Federation of Independent Business Small Economic Trends Survey.
The response is the highest level in the history of the survey, which was released today and has been published since 1973, the NFIB says. The Small Business Optimism Index jumped two points in January to 106.9 and set a record with the number of small business owners agreeing that the current economic conditions are favorable for expansion.
“Main Street is roaring,” NFIB President and CEO Juanita Duggan says in a statement. “Small business owners are not only reporting better profits, but they’re also ready to grow and expand. The record level of enthusiasm for expansion follows a year of record-breaking optimism among small businesses.”
State-specific data is unavailable. However, the national trends are reflected in Louisiana, says Dawn Starns, the organization’s state director.
Most components on the index posted gains, with earning trends rising as much as 11 points since December. Plans to increase employment and expected credit conditions, however, were flat. Current inventory and expected real sales declined by three points.
The NFIB continues to attribute the general optimism among small business owners to the Trump administration tackling issues like regulations and taxes.
But even though business owners report feeling more optimistic about the economy, they also say they’re struggling to find qualified workers for open positions, the NFIB says.
Reports of higher worker compensation rose four percentage points to 31%—the highest reading since 2000 and among the highest in the 45 years of NFIB’s survey. Plans to raise compensation also rose one point to 24%, the highest reading since 1989.
