Yes, it seems small business owners’ expectations have seen a sharp improvement. This is according to The Wells Fargo/Gallup Small Business Index and although more owners are still more pessimistic than optimistic overall, the index is the most positive it has been since April 2009.
According to Gallup, this poll is supposed to be an indicator of future economic activity. The Future Expectations Dimension of the Index is the most positive it has been since July 2008. This means that business owners expect that the next 12 months will bring improvements to revenues, cash flow, capital spending and hiring. Also, the percentage of owners expecting their situation to be somewhat or very poor over the next 12 months feel from 22% in July to 17% in November. A big improvement.
Factors listed to explain the greater optimism include the aggressive efforts of the Fed in providing liquidity to the economy and some potential post-midterm political optimism. I don’t know if I agree with the conjecture about the results based on the Fed’s intervention but I am totally onboard with the post-midterm election reasoning. It would appear that Joe Everyman has some hope that people are finally starting to listen.