Small Business Confidence Bounces Back
This quarter, the MetLife & U.S. Chamber of Commerce Small Business Index rebounded 3.1 points after dropping in the first quarter. The current Index score is 68.7, up from 65.6 last quarter.
This uptick is largely due to more positive perceptions of the national economy (outlooks on local economies were statistically unchanged) and continued optimism about business health and cash flow. Notably, the first quarter survey was taken in the midst of the longest federal government shutdown in history, which may have dented optimism in the short term. Some of the key findings this quarter include:
- 59% of small businesses say the U.S. economy is in good health, up six percentage points from last quarter.
- 27% of small business owners plan to increase investment in their company over the next year, continuing a trend from the last two quarters.
- Small businesses’ local outlooks are statistically unchanged from last quarter with 51% saying their local economy is in good health compared to 53% last quarter.
- 69% of manufacturers feel positive about the national economic outlook, up 16 percentage points from last quarter.