The National Federation of Independent Business (NFIB) has characterized the past five years as having a dearth of good small-business news. But the national organization of small-business owners reports that the results of its latest Small Business Optimism Index survey would lead everyone to believe that the drought is over.
The index found that the net percent of small-business owners expecting the economy to improve rose 16 points from November to a net 52 percent on a seasonally adjusted basis, the highest since the fourth quarter of 1983.
Additionally, the percent of small business owners believing it is a good time to expand their business rose six points to 20 percent. This is the highest reading since February 2020.
“Optimism on Main Street continues to grow with the improved economic outlook following the election,” said NFIB Chief Economist Bill Dunkelberg. “Small business owners feel more certain and hopeful about the economic agenda of the new administration. Expectations for economic growth, lower inflation and positive business conditions have increased in anticipation of pro-business policies and legislation in the new year.”
NFIB its calls monthly Small Business Optimism Index the gold standard measurement of America’s small-business economy. Used by the Federal Reserve, congressional leaders, administration officials and state legislatures across the nation, NFIB calls it the bellwether on the health and welfare of the Main Street enterprises that employ half of all workers, generate more net new jobs than large corporations and gave most of us the start in our working life.
The index also found the net percent of owners expecting higher real sales volumes rose eight points to a net 22 percent, the highest reading since January 2020. A net 6 percent of owners plan inventory investment in the coming months, up five points from November and the highest reading since December 2021.
The full results if the Small Business Optimism Index can be found on NFIB’s website at www.nfib.com.