What are small businesses telling JPMorgan Chase, other banks, and investors about the economy? In this video, Matt Koppenheffer and David Hanson discuss the latest from the JPMorgan small business survey. The good news: More than half of all small businesses anticipate sales and earnings to increase in the coming year. The bad news: Only 30% plan on increasing their capital expenditure, and only 30% plan on increasing their business loans. Given historically low interest rates, this is disappointing. You would hope that small businesses would take advantage of low interest rates, but instead they seem to be cautious. Hopefully, if more than 50% of small businesses do experience improved sales and earnings, they will start expanding their operations, which will lead to increased borrowing and profits for banks.
David Hanson and Matt Koppenheffer have no position in any stocks mentioned. The Motley Fool recommends Wells Fargo and owns shares of JPMorgan Chase and Wells Fargo. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
More from The Motley Fool
Should You Buy Financial Stocks in 2018?
The financial sector did well last year, and the run may not be over.
These Bank Bets Put Even Bitcoin to Shame
Find out why you have less than a year left to use some of these unusual investments.
JPMorgan Chase (JPM) Q4 2017 Earnings Conference Call Transcript
JPM earnings call for the period ending December 31, 2017.