WASHINGTON – Recent reports show a surge in confidence among small business owners and consumers as inflation falls, recession fears subside, and consumer spending rises. The growth in optimism coincides with an unprecedented Small Business Boom, which has seen more than 16.5 million new small business applications filed since President Biden took office – a record level. Thanks in part to this historic surge, economic optimism among small businesses has hit a 22-year high, with a majority of business owners saying they are “highly optimistic” about the national economy.
Other key indicators include:
- Roughly eight in 10 small business owners feel confident about their financial prospects, with more than half expecting profits to rise in the next six months. (PNC Financial Services Group)
- 85% of small businesses report being satisfied with the success of their businesses, and 86% said they achieved their 2023 business goals. (American Express)
- 50% of small businesses surveyed have plans to grow or expand their businesses in 2024. (American Express)
- Americans’ assessment of the economy is at its highest level in more than two years. (CBS)
The Biden-Harris Administration’s strong economic track record gives business owners and consumers alike much to feel positive about. The United States has had the strongest growth since the pandemic of the world’s major economies, with the longest low unemployment streak in over 50 years, strong GDP growth, and considerable wage growth.
See excerpts from coverage of growing confidence levels below:
CBS: Small business owners report growing optimism about the U.S. economy
- “Small business owners are feeling better about the U.S. economy as inflation cools and recession fears subside, according to a new survey. Indeed, economic optimism among smaller employers is at a 22-year high, PNC Financial Services Group found in polling small and midsize business owners.
- “A majority of respondents – 55% – said they are “highly optimistic” about the national economy this year. That’s up sharply from 34% last fall and 26% a year ago according to the Pittsburgh-based bank. Roughly eight in 10 owners also expressed confidence about their own businesses’ financial prospects. Over the next six months, just over half of the business owners who were surveyed think their profits will rise, while only 5% expect earnings to fall.”
- “As inflation slows, fewer small business owners also see a need to raise their own prices in the near term.”
Associated Press: Small business owners are optimistic for growth in 2024
- “Eighty-five percent of all small businesses surveyed said they were satisfied with the success of their business, and 86% said they achieved their 2023 business goals. In August 2023, by contrast, 80% of all small businesses surveyed said their long-term financial confidence was being negatively impacted by the economy.”
- “Fifty percent of small businesses surveyed have plans to grow or expand their business in 2024.”
