Small business owners are doing OK – but will that help Trump overcome his low approval ratings?
Overall, economic sentiment for Trump is poor, but small businesses seem fairly confident, according to several surveys There are 34m small businesses in the United States. They employ approximately half of the country’s workers and generate about half of the country’s GDP. They’re an important voting block. So how are they feeling about the economy as we head into November’s midterm elections?…
Donald Trump's approval ratings are low, but small business owners in the United States seem fairly confident, according to recent surveys. There are 34 million small businesses in the country, which employ about half of the workforce and contribute roughly half of the nation's GDP. They form a significant voting block, so their sentiment regarding the economy is crucial as we approach the midterm elections in November.
Various surveys and reports provide insight into the mood of small business owners. The National Federation of Independent Businesses reported that its Small Business Optimism Index fell slightly, while concerns about uncertainty rose. The top concern for 26% of owners is labor quality, while 20% are worried about inflation. However, expansion plans weakened, with only 17% planning to hire more employees in the next three months.
Despite these concerns, small-business confidence improved significantly in the third quarter, as shown by the Justworks/US Chamber Small Business Index. Seventy-two percent of the 750 small businesses surveyed feel comfortable with their current cash flow, although only 27% believe the US economy is in good health. Inflation remains the biggest issue, cited by 54% of owners.
Hiring data from companies like Gusto, Paychex, and ADP indicate that small businesses have been adding jobs in September, with some of the smallest employers continuing to expand, not just larger companies. ADP reported 90,000 new jobs added in September, with hiring accelerating after a period of slowing growth.
Intuit's QuickBooks Small Business Index, based on data from its millions of QuickBooks customers, shows a decline in employment at businesses with one to nine employees. However, revenues have increased this past month, with an inflation-adjusted average monthly revenue increase of 1.68%. Fiserv reported improving sales among US small businesses, although consumer behavior remains selective, and traffic has been weaker even as customers spend more.
Despite these challenges, economic growth continued in the third quarter, with manufacturing remaining in expansion territory. The service sector has also shown strong performance, with new orders and production all expanding. The Wall Street Journal reported that first-quarter annualized growth was revised to 2.5% from 2.1%, and second-quarter growth was increased to 2.2% from 1.5%, indicating that the US economy is performing better than pessimistic headlines suggest.
Written by urgent.news from Guardian Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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