Since the start of the Trump administration, there has been a noted increase in optimism among small business owners regarding their future prospects. In fact, data from both Gallup and the US Chamber of Commerce confirm that U.S. small businesses haven’t been this upbeat about the current situation in almost a decade.
Gallup Inc., the American research and consulting firm also known for its public opinion polls, recently released its latest data on small-business owners’ optimism index. Apparently, life is good for these businessmen as the Wells Fargo/Gallup Small Business Index is now at +106, an 11 point improvement from second quarter’s figure. In fact, optimism in the segment is the highest since 2017 when the index was measured at +113 for the second quarter of that year.
U.S. Small-Business Owners’ Optimism Highest in 10 Years… https://t.co/Tf21DnwDQK pic.twitter.com/uZsgsdHMBF
— GallupNews (@GallupNews) August 3, 2017
Gallup got their data by interviewing a random sample of small business owners nationwide last July 10-14. In the survey, businessmen were asked to evaluate their current situation as well as weigh in what they expect the future scenario of their businesses could be.
Apparently, the surveyed group feel that their current business situation has generally improved. They gave a +45 rating on average, up 6 points from second quarter’s +39 rating. However, their future expectations only increased minimally with the third quarter rated at +61 points compared with the second quarter’s +59.
Meanwhile, small business owners reported a net increase of jobs in their respective companies for the past 12 months, which is a reflection of the decreasing unemployment rate announced by the Trump administration. Twenty-one percent of those interviewed say that they have increased the number of jobs at their establishment. On the other hand, only 10 percent say that they have reduced the number of workers for the past 12 months.
The U.S. Chamber of Commerce also released data on what they call the MetLife & U.S. Chamber of Commerce Small Business Index, which basically agrees with the Gallup report. Among the major trends the report uncovered is that a whopping 60 percent expect their revenues to increase next year, which reveals the prevalent optimism in the segment. The poll also revealed that only nine percent are expecting a decrease in revenue.
According to the poll, small business owners are also planning to hire more employees in the near future. For every small business owner saying that they might reduce their manpower, five business owners are likewise saying they will definitely hire more to meet their needs.
The latest quarterly poll of small business owners shows an overall confidence index of +106, the highest level … https://t.co/pLQfsSntN9 pic.twitter.com/1kYfadvLNq
— Republic Buzz (@republicbuzz) August 8, 2017
The surging optimism among small business owners is seen as a result of President Trump’s promises that are business-friendly. These include increases in infrastructure spending, regulatory relief as well as tax reforms.[Featured Image by Investment Zen/Flickr]