U.S.: Small business confidence rises higher in March - TD Bank Financial Group

According to ActionForex, analysts at TD Bank Financial Group note that the NFIB’s small business optimism index rose by 2.4 points to 98.2 in March, marking the second consecutive monthly improvement. The reading was a hair higher than market expectations for a 98.0 print.

"Gains were broad-based under the hood, with seven of the ten subcomponents improving on the month and only three falling."

"Expectations regarding an improvement in the economy (up 11 points to -8%), higher real sales (up 8 points to 0%) and the belief that now is a good time to expand up (5 points to 11%) all recorded sizable gains in March."

"Labor market indicators were also broadly positive."

"Among the remaining sub-indicators, earnings trends, current inventory and plans to make capital outlays all eased on the month. The uncertainty sub-index, meanwhile, rose six points to a reading of 81."

"The NFIB small business report adds to the string of positive data last month, as confidence among American small business owners improved further in March. While gains in the sub-components were broad-based, the strength in labor market indicators is striking. Employment demand for workers remains strong, with job openings rising to a new record high last month. Small business owners are raising worker compensation in order to attract the right talent, and are passing down some of the added costs through higher prices – a theme that lines up with a stronger inflation outlook this year."