The recently approved Trump tax reform package has supercharged business optimism according to global banker UBS.
"Confidence dramatically higher," said the UBS note to investors.
UBS said that the combination of a surging U.S. economy, new tax rate cuts, expected infrastructure investments and a significant reduction in regulations has companies, by a two-to-one margin planning to hire more workers and invest more in their companies.
“Optimism soars after tax reform,” said the notice. “Business owners look to infrastructure for the next leg of growth,” it added in a pre-cheer for President Trump’s $1 billion infrastructure proposal to be presented to Congress tonight in his State of the Union address.
UBS, the Swiss-based global giant, said it has been tracking the sentiment of businesses with an average annual revenue of $3.5 million and found a big shift in optimism from the fourth quarter of 2017 to the first of 2018
- Economic outlook has increased from 65 percent positive to 83 percent positive.
- Market outlook went from 62 percent positive to 81 percent positive.
- Business outlook jumped from 77 percent positive to 87 percent positive.
- 65 percent said increased infrastructure spending will help their business.
- 36 percent plan to hire more, versus 14 percent that plan to cut jobs.
- 72 percent said the tax bill will boost the economy.
- 72 percent approved of the administration’s regulation reform.
- 68 percent said their companies are already benefiting from administrative actions.
Paul Bedard, the Washington Examiner's "Washington Secrets" columnist, can be contacted at email@example.com