Recent history hasn’t been too friendly to small businesses across the country. While the economy has been tough—and consumers have been hesitant to spend their hard-earned cash—conditions have started to improve. The sentiment of small business owners has started to creep up throughout the nation. This trend follows one of the harshest winters in recent memory, which constrained the economy even further. Thankfully, it appears that a better situation is on the horizon.
Economists Hope for Strong Turnaround
Winter of 2014 took its toll on the U.S. economy. According to the Associated Press, financial indicators were fairly negative during the first quarter of 2014, but that trend can likely be attributed to severe winter storms and other weather conditions that interrupted production and got in the way of travel and shipping. Economists hope that conditions will continue to improve, providing a boost to businesses everywhere. The media outlet reported that analysts expect to see stronger hiring, manufacturing growth and improved sales helping out the U.S. economy over the coming months.
“We have ample evidence that the first quarter was just a temporary setback for the economy and we are climbing out of the hole in the current quarter,” Stuart Hoffman, chief economist at PNC Financial, told the media outlet. While there is room for hope, some economists fear that global current events may have an impact on conditions back in the U.S., according to The AP. Even so, the forecast remains bright.
Confidence Emerges in Small Business Sector
Given these recent economic conditions, optimism surrounding U.S. small businesses has started to improve. The National Federation of Independent Business’ Optimism Index ticked up 1.4 points in May of 2014, now at its highest level since September of 2007. While these trends are good news for the sector, conditions have to further improve for additional gains to be felt.
NFIB chief economist Bill Dunkelberg stated that the gain in optimism was spurred along by sales expectations and business conditions, “With prices being raised more frequently in response to rising labor and higher energy costs it is clear that small businesses are unwilling to invest in an uncertain future,” he added. “As long as this is the case the economy will continue to be ‘bifurcated,’ with the small business sector not pulling its historical weight in the GDP numbers.”
Even so, small business owners across the country are facing improved economic conditions, which could lead to a more stable financial plan and an increased opportunity for sales.
Rising Optimism for Small Businesses
Small businesses are beginning to see light at the end of the tunnel as economic conditions improve and optimism rises. With economists projecting stronger hiring, manufacturing growth, and sales in the coming months, now is the time for small business owners to prepare for new opportunities. Whether it’s refining your financial plan, investing in your team, or exploring innovative strategies, the future holds promise.
Turn to First United Bank & Trust as your partner in this small business journey! We offer services for business banking, credit and loans, online banking, and much more.