Small Business Optimism Jumps To The Highest Level Since October 2007

The NFIB's Index of Small Business Optimism jumped to 95.2 in April from 93.4 in March.

"This is the first time the Index has reached 95 since October 2007," noted the NFIB. "The gain is modest but it is still the best reading post-recession. The main contributor to the improved Index came from expected business conditions. Small business owners are a bit more optimistic in this area but still 9 percent more owners expect business conditions to deteriorate than improve."

All of this is great news for those who had doubts the economy might struggle to accelerate again after the unusually cold winter.

The report included some good insight into the state of the labor market and the availability of credit, which is a leading indicator of business spending.

"Twenty-four (24) percent of all owners reported job openings they could not fill in the current period (up 2 points)," reported the NFIB. This is a sign of labor market tightness, which also means that the risk of wage inflation is increasing.

Like the NFIB's headline index, loan availability is at its highest level since the financial crisis. Easy lending standards are generally considered leading indicators of business investment and hiring and economic growth in general.