Optimism at U.S. small businesses rose in November to the highest point in more than 20 years on expectations of faster economic growth and stronger sales, the National Federation of Independent Business said Tuesday.
NFIB said its Small Business Optimism Index rose nearly 4 points to 107.7, the highest since a matching level hit in 1983.
The small business lobby group said the index, which has been above 100 for 20 straight months, was pushed higher by business plans to hire workers and boost inventories.
"Job creation plans haven't been this strong since 2000 and inventory investment plans are at record levels. If owners follow through on their plans, the GDP (gross domestic product) growth will strengthen substantially," NFIB Chief Economist William Dunkelberg said.
Optimism among business owners may stem in part from confidence the re-election of President Bush will not cause changes in government economic policies, the trade association said.
The report comes as the Federal Reserve prepares to meet on Tuesday amid wide expectations they will push up borrowing costs for a fifth time this year. More interest-rate increases are expected in 2005 as the economy gains strength.
The NFIB said capital spending plans eased substantially, but overall, capital spending remained solid.