Some small business data that’s very intriguing.
First, let’s look at The NFIB’s Small Business Optimism Index, just released, which ticked up in June to the highest level this year. Although small business leaders are still more pessimistic than the Index’s historical average of 98 (going back 49 years), the share of owners expecting better business conditions in the next six months improved by 10 points in June, to the best reading since February 2022.
The share of companies planning for capital expenditures in the next three to six months went up to 25% in May — and held steady there in June. That’s up from 21% at the beginning of the year (and it dipped to 19% in the wake of the March bank failures).
Second, and it feels like a “but,” confidence in small businesses remains relatively high. A new Gallup poll noted that 65% of US adults have confidence in small businesses. That’s more than the police (43%), church (32%), the Supreme Court (27%), public schools (26%), and large technology companies (26%). Congress is at 8%. This confidence is not political — 64% of Democrats, 68% of Republicans, and 66% of independents say they have a “fair amount” or “great deal” of confidence.
SMB owners are pessimistic, but their customers are trusting! Woot!
I included the data about big technology firms because it’s crucial for providers to know and understand the link. Customers view technology broadly, and the moves of big tech players influence the trust in technology companies broadly. Your SMB customers are still cautious about the economy. The good news is that sentiment is not getting worse. Your previous investments in building client trust will pay off during this time, and any trust deficit should be corrected as soon as possible.
Things are looking up.