It’s being called the “Trump Effect” and even his staunchest critics can’t deny that something special is going on.
Ever since election night, the Dow Jones has been soaring and major corporations have announced hiring sprees. Consumer confidence is high, as are housing starts.
Many analysts believe all this optimism was inspired by Donald Trump’s victory.
All politicians, even liberal ones, spout the usual line about “small businesses being the backbone of the American economy,” but it seems it took a Trump win to really revive them.
The November reading of the National Federation of Independent Businesses’ small business optimism index jumped to 98.4 from 94.9 — its sharpest surge since 2009 — with all of the increase in sentiment coming after the U.S. elections held on Nov. 8.
Among those who were surveyed following the election, the balance of opinion on whether business conditions were expected to improve skyrocketed from a reading of -6 to a whopping +38.
“Small businesses like unified Republican government,” said Neil Dutta, head of U.S. economics at Renaissance Macro Research LLC.
Bloomberg goes on to say that small businesses approve of Trump’s proposed tax cuts. There is also the sense that Trump’s Small Business Administration appointee Linda McMahon, will roll back regulations, while Trump himself leads the repeal and replacement of costly Obamacare.
In more good news:
The NFIB reading is the latest in a number of gauges tracking sentiment in the U.S. economy to have soared since the election, including the University of Michigan’s December report which showed that consumers’ assessment of current government economic policy rose to its highest level since 2009.