76% of U.S. Business Leaders Confident Trump Will Deliver Growth

Apple's CEO Tim Cook in 2012

Most U.S. business leaders are confident their businesses will thrive under the new administration.

About 76% of the country’s business leaders are confident that the freshly-minted president Donald Trump will help their businesses thrive over the next few years, a JPMorgan Chase survey shows.

The respondents are corporate executives from middle-market firms with annual revenues ranging from $20 million to $500 million. Business leaders are twice as confident as they were in 2016, the survey shows. About 80% said they were optimistic. Last year, only 39% shared the enthusiasm.

About 62% of small business owners whose companies make from $100,000 to $20 million on a yearly basis, said they were optimistic. This represents an improvement of 19% from last year’s levels.

The upbeat trend is reflected by an increase of 13% on the Dow Jones Industrial Average between the new president’s electoral win and inauguration. What’s more the S&P 500 saw a 10% gain over the same period.

A JPMorgan analyst noted that the equity market tends to monetize expectations. When the market went up it generated up to $3 trillion, which benefited tens of thousands of American households. In other words, “the equity market makes tomorrow’s hope today’s reality.”

The GOP is now controlling Congress and the White House, and their presidential nominee has won the presidential seat on a predominantly pro-business platform. The Tea Party is currently working on a sweeping tax reform and deregulation. Yet, these are not the only reasons the market is so bullish about.

Last year was a tough year with the Chinese economy slowing down, oil prices collapsing all over the world, and the Federal Reserve’s reluctance in hiking its benchmark interest rate.

Without these challenges, the surge in optimism might have not been so impressive. Analysts noted that despite the concerns dogging investors over the last eight years, the U.S. economy bounced back.

There’s a lot of momentum behind this now,

one analyst said.

The U.S. unemployment rates have also improved since the debut of the financial crisis in 2008. Back then, jobless rate stood at 10%, while now it has improved to 4.8%.

On top of that, Dow Jones passed the 20,000 limit on Jan. 25, for the first time in the indicator’s 120-year record. So, the survey also found 84% of middle-market bosses and 71% of small-business owners are confident about the future of their businesses.
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