August 2018 National Federation of Independent Business
Submitted by Atlas Indicators Investment Advisors on October 1st, 2018A long-term record for small business economic enthusiasm was broken in August 2018 according to the National Federation of Independent Business. Their optimism index reached 108.8 after hitting 107.9 in July. This most recent uptick put the tally above its previous high-water mark of 108 set in 1983.
These figures demonstrate small businesses are helping to drive America’s gross domestic product growth. New records were set for job creation plans as well as the job openings figure. Further, the percentage of small businesses saying now is a good time to expand tied the previous record set in May of this year. Additionally, capital spending plans reached the highest level since 2007, and firms’ plans to increase their inventories was the strongest since 2005. Not only are companies doing more business, but they are more profitable as well; the reporting frequency of positive profit trends reached the second highest tally in this survey’s history. Impressive indeed.
Main Street appears to be feeling good about the state of the economy. Along with this record-breaking reading, consumer measures of attitudes are soaring these days. America’s economy is moving along smoothly; output growth is well above levels associated with recessionary risks, unemployment is low, inflation is not increasing at a disruptive pace, and forward-looking indicators suggest more of the same for at least the next couple of quarters.