Small businesses are thriving – balancing inflation and consumer spending is on the rise

Recent reports show a surge in confidence among small business owners and consumers as inflation falls, recession fears subside, and consumer spending rises. The growth in optimism coincides with an unprecedented Small Business Boom, which has seen more than 16.5 million new small business applications filed since President Biden took office – a record level. Thanks in part to this historic surge, economic optimism among small businesses has hit a 22-year high, with a majority of business owners saying they are “highly optimistic” about the national economy.

Other key indicators include:

Roughly eight in 10 small business owners feel confident about their financial prospects, with more than half expecting profits to rise in the next six months. (PNC Financial Services Group)

85% of small businesses report being satisfied with the success of their businesses, and 86% said they achieved their 2023 business goals. (American Express)

50% of small businesses surveyed have plans to grow or expand their businesses in 2024. (American Express)

Americans’ assessment of the economy is at its highest level in more than two years. (CBS)

The Biden-Harris Administration’s strong economic track record gives business owners and consumers alike much to feel positive about. The United States has had the strongest growth since the pandemic of the world’s major economies, with the longest low unemployment streak in over 50 years, strong GDP growth, and considerable wage growth.