Bank of America: Corporate Sentiment Reaches Highest Level Since 2004

Bank of America’s Corporate Sentiment Score reportedly reached its highest level since the bank began recording it in 2004.

Based on an analysis of the number of positive words and negative words used in earnings calls, the bank’s Predictive Analysis team found that 52% of companies expressed optimism during recent earnings calls, compared to 46% in the previous quarter, Seeking Alpha reported Monday (Feb. 10).

In addition, mentions of the word “bottom,” which often suggest a potential earnings recovery, saw their biggest year-over-year increase in the history of the study, according to the report.

The National Federation of Independent Business (NFIB) said Jan. 14 that its NFIB Small Business Optimism Index rose 3.4 points in December to reach its highest level since October 2018.

The report found increases in the percentages of small business owners who expect the economy to improve, believe it is a good time to expand their business, expect higher retail sales volume and plan to invest in inventory.

“Optimism on Main Street continues to grow with the improved economic outlook following the election,” NFIB Chief Economist Bill Dunkelberg said at the time in a press release. “Small business owners feel more certain and hopeful about the economic agenda of the new administration. Expectations for economic growth, lower inflation and positive business conditions have increased in anticipation of pro-business policies and legislation in the new year.”

PYMNTS Intelligence found that there are various reasons why small- to medium-sized businesses (SMBs) can and should feel positive about the next several months.

While the year 2024 began as a question mark for the smaller firms that are central to Main Street communities and that power the U.S. economy as a whole, several trends showed SMBs growing more confident as the year went on, the report said.

As 2024 progressed and 2025 neared, fewer firms said their revenues were declining, more said their revenues had grown, and more said they increased their marketing and outreach to potential customers as part of their expansionary plans, according to the PYMNTS Intelligence report, “A Good Year: Why SMBs Grew More Confident in 2024.”