Optimism among small companies in the U.S. rose sharply in January, fueled by a record number of owners who said now was a good time to expand, according to a National Federation of Independent Business survey released yesterday. Six of the 10 components that make up the small-business optimism index increased in January, producing one of the strongest readings in the 45-year history of the survey.
The figures show sustained, sturdy business sentiment since the November 2016 election. A measure of plans to boost capital spending in coming months increased by 2 points to 29 percent, consistent with other data indicating stronger future outlays for equipment.
Finding qualified workers remains problematic for small businesses, underscoring what a tight job market we have. One in five small companies said they plan to boost hiring, which was unchanged from the prior month.