The economic news at the end of this year has been remarkably positive, and that positivity has manifested in dramatically improved confidence from both consumers and business owners. At this point, 2014 is likely to be remembered as the year the U.S. finally shook off most of the baggage left behind by the recession that hit in 2007. The increased economic confidence is good news for small-business owners, but it could also have unexpected consequences they’ll need to keep in mind.
Gallup’s U.S. Economic Confidence Index is closing the year at a 2014 high, and reached -5 in the past week. Generally, the survey increases from December to January, so it is possible the new year will be rung in with a positive economic outlook for many Americans.
The confidence gains are good news, but the improving economy is having effects that could make expansion difficult for some small-business owners. A survey of construction costs from Rider Levett Bucknall found the cost of building is increasing more rapidly as the economy gets better. Small-business owners who hoped to capitalize on the newfound economic confidence with expansion plans will need to account for this price change and will likely need to adjust their property insurance to cover the value of new properties accordingly.
