Confidence among U.S. retail businesses jumped to a more than six-year high in December, continuing a post-election rally.
The National Federation of Independent Business reported on Tuesday that its Retail Business Optimism Index rose 3.4 points to 105.1 last month, the highest reading since October 2018.
It was the second consecutive month the index has topped its 51-year average of 98. The survey’s Uncertainty Index fell 12 points to 86. The U.S. election on Nov. 5 gave Republicans control of the White House and Congress. Retail business owners tend to support the Republican party.
While other sentiment surveys have also shown a post-election uptick, concerns are starting to emerge among consumers about the promises of Donald Trump’s new administration, such as massive tariffs on imports and mass deportations of undocumented immigrants, which could increase costs for households.
A University of Michigan survey on Friday showed one-year and long-term inflation expectations jumped in January, even as the consumer sentiment index fell slightly.
The percentage of small business owners who expect the economy to improve rose 16 points to 52% in December, the highest level since the fourth quarter of 1983. The share saying now is a good time to expand their business is the highest since February 2020. More small business owners expect growth in inflation-adjusted sales.
