The NFIB Small Business Optimism Index rose eight points in November to 101.7, after 34 months of remaining below the 50-year average of 98. This is the highest reading since June 2021. Of the 10 Optimism Index components, nine increased, none decreased. , and one of them was unchanged. After last month's peak of 110, the Uncertainty Index declined 12 points in November to 98.
NFIB Chief Economist Bill Dunkelberg: “The election results signal a significant shift in economic policy, leading to increased optimism among small business owners. Main Street also became more certain about future business conditions after the election, breaking a streak of almost three years of uncertainty. Owners are particularly optimistic about tax and regulatory policies that favor strong economic growth as well as relief from inflationary pressures. In addition, small business owners are eager to expand their operations.”
This is a huge jump and just another sign that the US economy is picking up steam. Inflation risk and Fed policy will be the main focus in 2025.
NFIB US Small Business Optimism Index
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