The National Federation of Independent Business (NFIB) reported on Tuesday the Small Business Optimism Index increased by 1.6 points to 104.3 in January 2020, following a 2.0-point drop in December 2019.

According to the report, the January jump in the headline index was buoyed by advances in six of the 10 components, led by a 7-point increase in sales expectations and a 5-point gain in earnings trends. In addition, actual job creation surged 4 points in January. Meanwhile, expectations of the economy to improve dropped 2 points and expected credit conditions fell 1 point.

"2020 is off to an explosive start for the small business economy, with owners expecting increased sales, earnings, and higher wages for employees," noted NFIB Chief Economist William Dunkelberg. "Small businesses continue to build on the solid foundation of supportive federal tax policies and a deregulatory environment that allows owners to put an increased focus on operating and growing their businesses."