Small Business Optimism Index Rises Strongly

Showing no deterioration from a month of trade tensions, May's small business optimism index rose strongly for a second month with a 1.5 point gain to 105.0 which tops Econoday's consensus range. Expansion intentions including those for capital spending rose in May as did the economic outlook and expectations for retail sales. Like this report, surveys on consumer sentiment also posted strong gains in May. Underlying economic data may be mixed, including last week's employment report for May, but overall confidence is solid and improving.