Small Business Optimism Index Surges: NFIB

The small business optimism index surged 2.0 points in November to 98.1 for its highest reading of the recovery, going back to February 2007. The index is suddenly at its historic average of 98.0. The month is led by a huge gain in expectations that the economy will improve followed by expectations for higher sales. Earnings trends show a small gain while plans to increase employment also rose though just barely. Inflation readings remain very low. It's hard to pin point the reason for the general optimism but the surge does follow the mid-term November election results that saw the Republicans make sweeping gains in Congress.

Recent History Of This Indicator: The NFIB Small Business Optimism Index rose 8 tenths in October to 96.1 led by gains in capital spending plans and sales expectations. Current job openings are also on the rise. Lack of credit is not constraining NFIB's sample with those reporting problems with access to loans at a record low and an unusually high number saying they have no interest in borrowing.