Small business owners continued to express unprecedented confidence in the U.S. economy in February, with roughly 22% saying they had plans to increase worker pay, according to the latest National Federation of Independent Business Small Economic Trends Survey.
The index rose again in February to 107.6, up from 106.9 in the prior month, the NFIB says. The new index number reflects a rise in small business owners increasing capital outlay spending and wages.
“When small business owners have confidence and certainty in the economy, they’re able to hire more workers and invest in their businesses,” says NFIB President and CEO Juanita Duggan. “The historically high readings indicate that policy change—lower taxes and fewer regulations—are transformative for small businesses. After years of standing on the sidelines and not benefiting from the so-called recovery, Main Street is on fire again.”
State-specific data isn’t available. But Dawn Starns, the NFIB director in Louisiana, says members have indicated that now is a good time for them to grow their businesses.
The February report shows several components of the index reached noteworthy highs, the NFIB says. About 66% of owners plan to increase capital outlay spending, up five points from January and the highest reading since 2004.
Owners expecting higher sales rose three points to 28%, one of the best readings since 2007. Meanwhile, the net percent of owners reporting inventory increases rose three percentage points to 7%.
The only component to decline is the category for plans to increase employment. That component decreased two percentage points to 18%.
