According to a quarterly survey by both Wells Fargo and Gallup, small business owners are entering 2018 on a positive note. Both surveys were taken between Jan 2-9, only a few weeks after the Republican tax reform bill, and many are excited about their prospects over the next 12 months. An overall index of owner optimism rose from 103 three months ago to 107 this year.
The latest survey, which questioned 603 owners, was taken more than two weeks after the enactment of the new tax law. The law raised the prospect of lower taxes for small customers as well as company owners.
As the economy ended last year with a 2.3% growth many small businesses are now looking to 2018 for consistent expansion. Hiring plans are up as “a third of the owners surveyed by Wells Fargo and Gallup said they’ll be hiring over the next 12 months. That’s up 1 percentage point from the previous survey, taken in November.”
In addition, according to a study by Harvard University’s Joint Center for Housing Studies, home remodeling is looking to explode in 2018 as growth in the sector is the largest it’s ever been since the Great Recession. “The center’s quarterly Leading Indicator of Remodeling Activity forecasts 7.5 percent growth in spending by homeowners on improvements and repairs compared to what they spent in 2017. Spending grew 6.3 percent last year. The strong economy and rising home sales prices have helped lift demand for home improvements, said Chris Herbert, manager of the Harvard center,”