Analysts at Nomura note that the NFIB small business survey improved further in February to 107.6, from 106.9 for US, the highest reading since 1983.

Key Quotes

“The percentage of businesses reporting now as a good time to expand remained elevated at 32% while the percentages expecting an improving economy and higher real sales both increased. Capital outlay plans remained in strong territory, while the percentage of businesses raising worker compensation stayed at a post-crisis high of 31%. The survey showed resilient optimism from small businesses as the new tax legislation takes effect and economic growth prospects for 2018 remain robust.”

“Quality of labor remains an area of concern for small businesses, likely reflecting a historically low unemployment rate and shrinking pool of available workers. However, consistent with new tax policies, the percentage of businesses reporting taxes as their single most important problem dropped sharply to 15%, well-below the 21% reading for December 2017.”