US: Optimism remains elevated and businesses continue to report plans to expand - Wells Fargo

Data released today showed that the Small Business Optimism Index (NFIB) rose to 101.8 in March. Analysts at Wells Fargo, point out that while the index has fallen from lofty highs of recent years, optimism remains high. They noted that data showed wages rising, but with price pressures still easing. 

Key Quotes: 

“The 101.8 reading indicates optimism among business owners remains high, although owners have become more guarded. Stronger consumer confidence and less volatile financial markets will likely bring further gains in coming months.”

“The proportion of firms expecting the economy to improve was little changed at 10.8%, however those reporting that now was a good time to expand increased to 22.6%.”

“Plans to hire improved modestly, although the trend has softened, which is consistent with our expectation for a more moderate pace of hiring this year. Difficulty finding labor was once again a top concern, leading to more firms raising compensation.”