The National Federation of Independent Business' (NFIB) monthly index of small business economic indicators jumped 2.1 points in October to a near-record 104.
Eight of the indicators improved, while only two deteriorated.
"The economy is hitting on all cylinders now," says NFIB chief economist William Dunkelberg. "Fourth quarter growth will be very strong."
Dunkelberg predicts the nation's gross domestic product (GDP) will grow 5.4 per cent in the fourth quarter, down from the third quarter's "sizzling" 7.2 per cent, which was the highest quarterly GDP growth rate since the early 1980s.
Nearly half of small business owners surveyed expect the economy to be better in six months, compared with only 7 per cent who expected it to be worse.
About 28 per cent of small businesses reported capital spending plans, up 2 points from September, and 60 per cent reported actual capital outlays in the past six months.
