Small Business Optimism at Three-Year High

Washington, DC, Dec. 14, 2010 -- Confidence among U.S. small businesses rose in November to the highest level in three years, according to a survey by the National Federation of Independent Business.

NFIB's optimism index increased to 93.2, the highest since December 2007, from an October reading of 91.7. Seven of the index’s 10 components rose and three declined.

“It was encouraging to see substantial improvement in expectations for economic performance, critical if spending and hiring are to elevate beyond survival and replacement levels,” William Dunkelberg, the group’s chief economist, said in a press release.

“Plans to hire, make capital outlays and invest in inventories all rose, albeit from historically low levels.”

The gauge of expectations for better business conditions six months from now rose to the highest level since June 2005, jumping 8 points to 16% in November.

The measure of hiring plans over the next three months rose three points to a net 4%.