US small business optimism hits record high in August, NFIB says
Small businesses in America were in high spirits in August, according to the results of a closely-followed survey, with sentiment at its most buoyant in the report's 45-year history.
The National Federation of Independent Businesses's small business optimism index jumped by 0.9 points from the month before to hit a reading of 108.8, surpassing the previous record of 108.0 that was set in 1983.
"As the tax and regulatory landscape changed, so did small business expectations and plans," said NFIB President Juanita D. Duggan.
"We're now seeing the tangible results of those plans as small businesses report historically high, some record breaking, levels of increased sales, investment, earnings, and hiring."
According to the NFIB, six of the gauge's components improved from the month before, three declined and one was steady.
Job creation plans and job openings set records, with capital spending plans the highest since 2007 and those for inventory investment the strongest since 2005, the lobby group said in a statement.
The proportion of companies that believed that "now is a good time to expand" and a gauge of earnings trends also improved, even as expectations for an improved economy and sales retreated, as did expectations for credit conditions.