National Score 69.5

The increase in the Northeast’s Index score is likely attributed to incremental, directional improvements in their expectations. About two in five Northeastern small businesses say they plan to increase staff or investment in the next year (46% and 44%, respectively), up slightly, but not significantly, from last quarter (40% and 35%, respectively). With this slight shift, small businesses in the Northeast are now more likely to say they plan to increase staff compared to those in the West.

Southern small businesses are more optimistic about future expectations and the economic environment this quarter. Nearly half say they expect to increase investment or hire more staff in the next year (48% and 45%, respectively), up 13 percentage points each from last quarter. About four in five (83%) now say they plan for revenue to increase in the next year: the highest reading since the study began in Q2 2017*.

About two in five Midwestern small businesses now say they plan to increase staff or increase investment in the next year, increasing by 16 and 10 percentage points, respectively, from last quarter. 78% of Midwestern small businesses now say they are comfortable with their cash flow, up 14 percentage points from last quarter and the highest recorded since our final pre-pandemic survey in Q1 2020*.

Western small businesses are now slightly, but not significantly, more positive about their business operations this quarter. Seven in ten say they are comfortable with their cash flow (+9 percentage points from last quarter), and 21% now say they have increased staff in the past year (+8 percentage points from last quarter).