Small business owners are feeling particularly good about their prospects in 2017 So much so that the economic outlook has improved by 50 percent since the election.
That’s according to the UBS Investor Watch, the quarterly report by UBS Wealth Management Americas. The report reveals the highest levels of investor optimism since the 2008 financial crisis.
Key Highlights of the UBS Investor Watch
Driven by their optimism, small businesses are planning some big things this year. About 41 percent, for example, are planning to invest more in their businesses.
Thirty percent are planning to increase hiring while 55 percent of investors are actively looking for investment opportunities. The message is clear. Small businesses are positive about their future growth, and are showing an optimism not seen for quite some time.
“After years of caution following the financial crisis, we are finally seeing the tide turn. Investors are more willing to move cash off the sidelines and increase investments, while business owners are set to increase capital spending and hiring,” said Paula Polito, Client Strategy Officer of Wealth Management Americas in a press release. “If the recent optimism continues, it will bode well for the markets and the economy.”
President Trump’s Regulation Cutting Gets Thumbs Up From Small Businesses
There seem some obvious reasons for the optimism. U.S. President Donald Trump’s executive order to cut regulations has brought a lot of joy for small businesses.
On January 30, 2017, President Trump signed the EO to ease the regulatory burden weighing down America’s small businesses.
According to Sameer Aurora, head of Client and Investor Insights for Wealth Management Americas, “Investors have high expectations of the new administration, particularly with regard to deregulation, infrastructure spending and tax reform.”
“These expectations are fueling a sharp rise in optimism and prompting investors to put more of their money to work.”
For the report, UBS Wealth Management Americas surveyed 2,025 U.S. investors.
Business Meeting Photo via Shutterstock