Small Business Owners are Feeling Optimistic

In a refreshing wave of economic optimism, small business owners across the U.S. are expressing renewed confidence in the national economy. A recent survey by PNC Financial Services Group reveals that optimism among smaller employers has surged to a 22-year peak, with 55% of respondents declaring they are “highly optimistic” about the economic outlook for this year. This marks a dramatic increase from 34% last fall and just 26% one year ago.

The upbeat mood is most likely due to cooling inflation and diminishing fears about recession, causing people to be more hopeful about the future of the American economy. Nearly 80% of business owners are confident in their own companies’ financial futures, and over half anticipate profit increases in the next six months. Only 5% said they expected a downturn in earnings.

Gus Faucher, PNC Chief Economist, highlighted the economy’s robust growth in the latter half of 2023, propelled by consumer spending and business investment—a trend that’s expected to continue into 2024. This optimism is further evidenced by a decrease in the number of businesses planning to raise prices, signaling relief from inflation pressures.

Small businesses, employing nearly 62 million Americans, play a pivotal role in the U.S. economy, driving job creation and innovation. Despite challenges such as accessing loans and finding skilled workers, the sector’s resilience and bright outlook underscore its integral contribution to economic growth and stability. With the National Association for Business Economics forecasting a GDP rise of 2.2% in 2024 and a decline in inflation rates, the future looks promising for small businesses and the U.S. economy at large.