Small business sentiment is on the rise to kick off 2020, with confidence nearing all-time highs, according to data from CNBC and SurveyMonkey. The CNBC/SurveyMonkey Small Business Confidence Index climbed two points in the first quarter, from 59 to 61, as concerns over trade policy impacts lessened, thanks to a trade deal with China and the signing of the USMCA. This is a sharp turnaround from the lows seen last summer as trade turmoil weighed on Main Street's outlook.
While confidence increased, the move can be attributed to more business owners feeling less pessimistic about issues like trade, moving to a more neutral position. If small business owners had turned positive on their outlook, the confidence index could have risen even further this quarter. In the next 12 months, about one-fifth of small business owners expect a negative impact from changes in trade policy, while 26% expect a positive effect — more than half say the changes will have no impact. Of the small business owners that said either deal would impact their operations directly, most came from the retail sector.
Jobs and the economy came in as the top issues for one-third of respondents, followed by health care, the environment and immigration. Finding qualified workers to fill positions remains the biggest challenge for 19% of respondents, the same percentage of respondents who deemed this their biggest hurdle in Q1 2019.is doing so well," McCracken says. "It's hard to find workers for that next opportunity.
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