Gem State Wire

The National Federation of Independent Business (NFIB) released its latest Small Business Optimism Index, showing a significant increase in entrepreneurial confidence. The index, which reflects the attitudes of Main Street entrepreneurs towards the economy, rose to 101.7 in November, surpassing its 50-year average of 98. This improvement follows 34 consecutive months where the index remained below the half-century average.

Suzanne Budge, state director for NFIB in Idaho, highlighted the importance of this development. "This is the best news to come around in a long time," Budge stated. She credited Governor Brad Little and state legislators for their efforts in supporting local mom-and-pop enterprises amid national economic challenges.

NFIB Chief Economist Bill Dunkelberg attributed the increase in optimism to recent election results, which he said indicate a major shift in economic policy. "The election results signal a major shift in economic policy, leading to a surge in optimism among small business owners. Main Street also became more certain about future business conditions following the election, breaking a nearly three-year streak of record high uncertainty. Owners are particularly hopeful for tax and regulation policies that favor strong economic growth as well as relief from inflationary pressures. In addition, small business owners are eager to expand their operations," Dunkelberg explained.

Key aspects of the report showed a 41-point rise in the percentage of owners expecting economic improvement, hitting a net 36%, the highest since June 2020. Additionally, the belief among small business owners that it is a good time to expand increased by eight points to 14%, marking the highest level since June 2021. Seasonally adjusted, the net percentage of owners expecting higher real sales volumes increased by 18 points to 14%, the highest since February 2020.

The NFIB’s Small Business Optimism Index serves as a key indicator of the health of the small business sector, often used by Federal Reserve, Congressional leaders, and other policymakers. Typically, NFIB members have between one and nine employees and report gross sales of approximately $500,000 annually.

For more details on the latest small business developments in Idaho, visit the website nfib.com/idaho or follow on social media @NFIB_ID.

NFIB has been dedicated to advocating for small and independent business owners across the United States for 80 years. As a nonprofit and nonpartisan association, it remains committed to supporting small businesses nationwide.