The NFIB Index of Small Business Optimism hit a three year high in November. Small business confidence is finally beginning to improve. While still at recessionary levels, the NFIB index has made a decided move up. Even more encouraging for the millions of unemployed folk among us, is the improvement in the hiring plans index which reached a post recession high in November. About 70% of new jobs are created by small businesses. If small businesses follow through with their hiring plans we should begin to see the unemployment rate move down.
There is no doubt, at least in my mind, that the recent improvement in the NFIB Index has much to do with the outcome of the November elections. A divided congress will provide the small business sector with some much needed certainty.
Jeremy Jones, CFA
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