Gem State Wire

The latest release of the Small Business Optimism Index from the National Federation of Independent Business (NFIB) indicates a significant rise in small business optimism. The net percentage of owners expecting economic improvement has increased by 16 points since November, reaching a net 52%—the highest level since the fourth quarter of 1983.

Additionally, the proportion of small business owners who believe it is a good time to expand their businesses rose six points to 20%, seasonally adjusted. This is the highest reading since February 2020.

Suzanne Budge, state director for NFIB in Idaho, commented on this development: “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.” She also expressed pride and gratitude towards Idaho's governor and Legislature for their efforts over the past five years to support small businesses amid national economic challenges.

The NFIB’s Small Business Optimism Index is widely regarded as an essential measure of America's small business economy. It serves as a reference for policymakers including the Federal Reserve, Congressional leaders, administration officials, and state legislatures. The index reflects sentiments among NFIB-member small-business owners across the nation without state-specific breakdowns. Typically, these members employ between one and nine people and report gross sales of about $500,000 annually.

Bill Dunkelberg, NFIB Chief Economist, noted that "Optimism on Main Street continues to grow with the improved economic outlook following the election." He highlighted that expectations for economic growth, lower inflation, and favorable business conditions have risen due to anticipated pro-business policies from the new administration.

Further highlights from the latest index show that the net percentage of owners expecting higher real sales volumes increased by eight points to a net 22%, marking its highest level since January 2020. Additionally, a net 6% of owners plan inventory investment in upcoming months—up five points from November—reaching its peak since December 2021.

For more than eight decades, NFIB has been advocating for America’s small and independent business owners at both federal and state levels. As a nonprofit organization founded in 1943, NFIB remains dedicated solely to supporting these enterprises today.