The latest NFIB Small Business Optimism Index experienced a notable increase in November, rising by eight points to reach 101.7, as announced today. This marks the highest reading since June 2021 after it remained below the 50-year average of 98 for 34 months. Out of the 10 components in the index, nine saw an increase, none decreased, and one remained unchanged.
Tray Abney, state director for NFIB in Nevada, commented on the developments: “Small business job creators are obviously thrilled to put the election silliness behind them and are optimistic that the new leadership in Washington, DC will put their priorities above politics. We can only hope that our leaders in Carson City will do the same next year.”
NFIB Chief Economist Bill Dunkelberg provided further analysis, stating that: “The election results signal a major shift in economic policy, leading to a surge in optimism among small business owners. Main Street also became more certain about future business conditions following the election, breaking a nearly three-year streak of record high uncertainty. Owners are particularly hopeful for tax and regulation policies that favor strong economic growth as well as relief from inflationary pressures. In addition, small business owners are eager to expand their operations.”
Significant findings from the report show a 41-point rise in the net percent of owners expecting the economy to improve, reaching a net 36%, the highest since June 2020. Meanwhile, the net percent of small business owners who believe it is a good time to expand their business increased by eight points to a net 14%, the highest reading since June 2021. Additionally, the net percent of owners expecting higher real sales volumes increased by 18 points to a net 14% (seasonally adjusted), achieving the highest reading since February 2020.
The NFIB’s monthly Small Business Optimism Index is widely recognized as the gold standard in assessing America’s small business economy. It is utilized by the Federal Reserve, Congressional leaders, administration officials, and state legislatures across the nation and is considered an indicator of the health and welfare of Main Street enterprises.
NFIB has been committed to advocating for America’s small and independent business owners for 80 years. A nonprofit, nonpartisan, and member-driven association, NFIB remains dedicated to supporting small businesses both in Washington, D.C., and nationwide.
