(TheFreedomFlag.com)- Small businesses are feeling optimistic about the future of the national economy, as the decision to relax lockdown measures across the United States is getting businesses running again and people back to work.
The reopening of the economy has caused a 6.2-point spike in the Small Business Optimism Index, which has peaked at 100.6 in June. According to data released on Tuesday by the National Federation of Independent Business, the spike beat the expectations of 96.7. It was even higher than the high-end expected range predicted by Econoday economists.
The National Federation of Independent Business also reported a surge in its measure of sales expectations. It jumped by a record 37 points to reach a positive 13 figure. It means that businesses across the country are currently experiencing an increase in demand from customers.
“Small businesses are navigating the various federal and state policies to reopen their business and they are doing their best to adjust their business decisions accordingly,” Bill Dunkelberg of the NFIB said. “We’re starting to see positive signs of increased consumer spending, but there is still much work to be done to get back to pre-crisis levels.”
The good news comes as President Donald Trump ramps up his re-election campaign and continues to tout the idea of V-shaped economy recovery. In June, the president was talking about the likelihood of a V-shaped recovery, which effectively means spending and growth returns as soon as businesses start to reopen as they used to.
In a website post, the Trump campaign described the positive numbers as “the scenario that Joe Biden and the Democrats have been dreading.”
“They were hoping for a slow, L-shaped recovery, but that ‘not looks remote,’ according to the Journal,” the post added.
The recovery of the economy could help determine the outcome of this election, which is likely why President Trump is pushing for the end of lockdown measures as soon as possible. Ending lockdown will give the economy the best chance to recover more quickly.
Data shows that seven out of the 10 components of the Small Business Optimism Index rose through June. These were economic expectations, job openings, current inventories, assessment of ability to expand, hiring plans, capital outlays, and plans to grow inventories.
The NFIB polled 670 companies nationally, finding that the outlook is good generally across the board.