Small Business Sentiment at its Highest in 4 Years Says U.S. Chamber of Commerce

July 8, 2024

Delaney Sexton
Contributing Editor

Small Business Sentiment at its Highest in 4 Years Says U.S. Chamber of Commerce

In the second quarter of 2024, small business sentiment was boosted according to the U.S. Chamber of Commerce’s Small Business Index. The SBI’s score was 69.5, a gain of more than 7 points from the first quarter of 2024. It is also one of the best scores seen in the last four years. This increase can be attributed to positive expectations for cash flow, hiring, and revenue.

About three-quarters of small business owners anticipate that their revenue will increase in the next year, the highest reading ever recorded since this survey’s start in 2017. The same number of small businesses reported being comfortable with their current cash flow. Two-thirds of small business owners feel that their business is in good health. Almost half of small businesses plan to increase investment in the next year, an increase of 10% from the previous quarter. This reading falls just short of an all-time high reading in the last quarter of 2022 by only one point.

Small businesses’ perception of the economy is up in the second quarter of 2024. When asked about their view on the economy, 36% said that the U.S. economy is in good health, and 42% said that their local economy was in good health. Compared to last year, both of these readings are up by 12%. There are differences depending on the sector that the business is in. Small businesses in professional services were more likely to think positively about the national economy than other sectors.

Source:
U.S. Chamber of Commerce & MetLife Small Business Index Q2 2024