The level of confidence among U.S. small businesses rose in May to the highest since September 2008. A private survey found that this confidence was because executives became more upbeat about the economy six months from now.

From Bloomberg.com:

The measure is still lower than levels reached in past economic rebounds, indicating the recovery will take time to gain strength. The report shows that while smaller firms are beginning to benefit from the expansion, they’re trailing larger companies such as General Electric Co.

“Small businesses have lagged the jobs recovery and the economic recovery and are likely to do so,” said John Herrmann, senior macro strategist at State Street Global Markets in Boston. “We’re seeing the slightest of indications that business hiring and risk-taking in the form of expansion and business formations may be taking place.”

The small-business optimism gauge has recovered more slowly than measures such as the Institute for Supply Management’s manufacturing index that capture activity among companies of all sizes. GE Chief Executive Officer Jeffrey Immelt said May 24 that the U.S. economy is “very good and improving.”

According to the U.S. Small Business Administration, 99 percent of all employers in the United States are represented by small businesses.