·
The Small Business Optimism Index for
November published by the National Federation of Independent Business
(NFIB) surged 3.7% to 107.7 in November, the highest level in twenty
years.
· During the last ten years there has been a 68% correlation between the level of the NFIB index and the two quarter change in real GDP.
· The percentage of firms expecting the economy to improve ballooned to 47%, the highest level since last year and the percent of firms planning to raise employment rose to 19% near last year's high. During the last ten years there has been a 63% correlation between these hiring plans and the three month growth in nonfarm payrolls.
· An elevated 35% of firms expected higher real sales in 6 months. The net of firms expecting higher earnings this quarter was stable at -7 and sustained the recent sharp improvement.
· The percentage of firms raising average selling prices fell to 18%, well below the averages for 2Q & 3Q.
· About 24 million businesses exist in the United States. Small business creates 80% of all new jobs in America.