Well now everyone is talking about “animal spirits” but I brought it up first in the days before the election, and we have yet even more evidence it’s permeating throughout the economy- this time among small businesses.
The National Federation of Independent Businesses (NFIB) Optimism Index edged up 3.5 points to 98.4, which actually puts it slightly below is historic norm, but the real story is the before and after numbers- that roared!
After the election of GOP nominee Donald Trump, small business optimism swelled overnight.
Expectations for job creation and higher sales increased dramatically after November 8, but it was the 44 point reversal higher in anticipation of better business conditions that best captures the animal spirits of small businesses.
|
Optimist Inflection Point |
Before Election |
After Election |
|
Expect Job Creation |
9 |
23 |
|
Expect Higher Sales |
4 |
20 |
|
See Better Business Conditions |
-6 |
38 |
Like the stock market rally, this renewed optimism among small businesses should be sustainable but predicated on the GOP being able to deliver on Trump’s vision and promises. This notion was underscored by Juanita Duggan, President and CEO of NFIB.
NFIB Statement
“Small business owners are clearly encouraged by the election results, but now it’s time for President-elect Trump and congressional leaders to deliver,” said Duggan. “Federal taxes, regulations, and Obamacare are the three biggest impediments to running a small business in America. Small business owners have high expectations that those problems will be addressed.”
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