The National Federation of Independent Business (NFIB) released its latest Small Business Optimism Index, which showed a 0.5-point increase in December, bringing the index to 99.5. This level remains above the index’s 52-year average of 98. The rise was primarily driven by more small business owners expecting improved business conditions.
Tray Abney, NFIB’s state director for Nevada, attributed the sustained optimism partly to legislative changes. “Nice to see NFIB’s Small Business Optimism Index remaining above its 52-year average, which I believe is due in large part to the 20% Small Business Deduction having been made permanent last year. It was to have expired at the end of last month, so a lot of anxiety was building before then. Now, if Congress can positively act on the nine legislative priorities we recently sent lawmakers, maybe optimism can be a permanent feature instead of a tentative one.”
Bill Dunkelberg, chief economist at NFIB, commented on broader economic expectations: “2025 ended with a further increase in small business optimism. While Main Street business owners remain concerned about taxes, they anticipate favorable economic conditions in 2026 due to waning cost pressures, easing labor challenges, and an increase in capital investments.”
The December report highlighted several findings:
– The percentage of owners expecting better business conditions increased by nine points from November to a net 24%, marking the first such rise since July.
– When assessing their businesses’ health: 9% rated it as excellent (down two points), 54% as good (up one point), 34% as fair (up four points), and 3% as poor (down two points).
– Taxes were cited by 20% of small business owners as their most significant problem—an increase of six points from November and the highest level since May 2021.
Alongside the report release, NFIB introduced a new episode of its podcast “Small Business by the Numbers.” Hosted by Holly Wade and Peter Hansen from the NFIB Research Center, this podcast discusses data and economic trends affecting small businesses across the country.
NFIB’s monthly Small Business Optimism Index is widely recognized by policymakers—including those at the Federal Reserve and in Congress—as an important measure for understanding trends among America’s small businesses. The index covers a range of companies across all industries but does not break down results by state.
For ongoing updates about Nevada’s small business community, readers can visit www.nfib.com or follow @NFIB_NV on X.
