U.S. small business confidence hit its highest level in 6-1/2 years, as reported by National Federation of Independent Business today, and forward prospects appear to be brightening considerably.
What’s the point? During this economic cycle, the small business sector has struggled behind the larger companies in the pace of its recovery. The fact the small business optimism is improving is a very good indicator, both coincident as well as prospective indicator, for the economy. It also lends further credence to 1) the fact the U.S. economy should accelerate somewhat and b) the thesis that this economic recovery has more legs to it, and could last several more years before entering the next recession.