Looking to expand business and hire more workers, small business owners voiced their positivity in the economy as the latest NFIB Small Business Optimism Index added 2.3 points to post a score of 104.7, just a little below its cycle high.

 

Seven of the 10 components that responders rate in the monthly survey grew - the biggest winner being the earning trends component, which rose 10 points. Reports of greater sales in the last three months gained eight points to come in at its highest level since May of 2018. And the score for business owners that said that now is a good time for expansion picked up six points.

At the same time, the NFIB Uncertainty Index fell six points. Combined with the four-point drop in the prior month, that tally is now at its lowest level since May 2018. The Wells Fargo Economics Group credited the decrease to possible optimism that trade deals with China and Mexico are near.

And they added, "The improvement in small business confidence likely reflects stronger sales in recent months, as well as some drawdown in inventories (as) the strength in sales has helped curb inventories. The net share of business owners stating that inventories were "too low" rose five percentage points."