Owners of small businesses are the most optimistic they’ve been in nearly seven years, the National Federation of Independent Businesses reported Tuesday.
The NFIB Optimism Index rose 1.4 points in May to 96.6, its highest mark since September 2007. However, the NFIB said the increase is still short of what normally be seen in a post-recession expansion.
“May’s numbers bring the Index to its’ highest level since September 2007. However, the four components most closely related to GDP and employment growth (job openings, job creation plans, inventory and capital spending plans) collectively fell 1 point in May. So the entire gain in optimism was driven by soft components such as expectations about sales and business conditions,” NFIB chief economist Bill Dunkelberg said in a statement. “With prices being raised more frequently in response to rising labor and higher energy costs it is clear that small businesses are unwilling to invest in an uncertain future.”