The National Federation of Independent Business (NFIB) announced on Jan. 14 that its latest Small Business Optimism Index showed a significant increase, with the net percent of owners expecting the economy to improve rising by 16 points from November to a net 52 percent, seasonally adjusted. This is the highest level recorded since the fourth quarter of 1983.
The report also found that the percentage of small business owners who believe it is a good time to expand their businesses increased by six points to 20 percent, which is the highest reading since February 2020. The NFIB said these results indicate renewed confidence among small business owners after several challenging years.
Suzanne Budge, state director for NFIB in Idaho, said, “It heartens me to see the resilience of American small business come shining through once again. This good news has been a long time coming.” Budge added, “You can put Main Street enterprises down but never count them out. I’m also so very, very proud and grateful that Idaho’s governor and Legislature did everything in their powers these past five years to mitigate the worst the national economy could throw at small businesses.”
According to NFIB Chief Economist Bill Dunkelberg, “Optimism on Main Street continues to grow with the improved economic outlook following the election. 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.”
Other highlights from this month’s index include an eight-point rise in owners expecting higher real sales volumes (to a net 22 percent), marking the highest reading since January 2020. Additionally, a net six percent of owners plan inventory investment in coming months—up five points from November and reaching its highest level since December 2021.
The NFIB’s monthly Small Business Optimism Index is widely used as an indicator by policymakers including members of Congress and officials at federal agencies. The organization represents small businesses across all states and has advocated for independent business interests for over eighty years.
