The National Federation of Independent Business (NFIB) has announced that its Small Business Optimism Index jumped by 8 points in November, reaching 101.7—the highest level since June 2021. This increase marks the largest recorded surge in the index’s history. Additionally, the NFIB’s uncertainty index fell by 12 points, reflecting reduced concerns following the presidential election.
“The election results indicate a significant shift in economic policy, sparking a wave of optimism among small-business owners,” said Bill Dunkelberg, NFIB’s chief economist. “Owners are particularly hopeful for tax and regulatory changes that promote strong economic growth and alleviate inflationary pressures.”
The report showed broad improvements across the index’s various components. The outlook for business conditions over the next few months soared by 41 points, the largest monthly increase since the NFIB began tracking data in 1986, bringing this metric to its highest level in over four years.
A net 14 percent of respondents believe now is a favorable time to expand their businesses, driven by expectations of a more supportive tax and regulatory landscape under a potential second Trump administration.
Despite this optimism, many businesses are still facing ongoing challenges. Inflation and difficulties in finding qualified workers remain significant concerns. Approximately 28 percent of respondents plan to raise prices in the next three months, the highest percentage since May, while 48 percent reported having few or no qualified applicants for open positions.
On a positive note, hiring intentions showed modest improvement, with a net 18 percent of owners planning to create new jobs in the coming three months, an increase of 3 percentage points from October.
These results highlight a renewed confidence among small-business owners as they look forward to potential policy changes aimed at fostering growth and easing economic pressures.
