Small business owners are feeling more confident about the economy after the recent presidential election, according to a new survey by the National Federation of Independent Businesses (NFIB).
The NFIB Small Business Optimism Index rose by eight points in November, the Associated Press reported, reaching 101.7 — the highest level since June 2021. The Uncertainty Index, which had hit a record high of 110 in October, dropped significantly by 12 points to 98.
Bill Dunkelberg, NFIB’s chief economist, attributed the improved outlook to greater certainty about future business conditions following the election. This shift ended nearly three years of elevated uncertainty among small business owners.
The survey also revealed a sharp increase in economic optimism. The net percentage of owners expecting the economy to improve jumped by 41 points from October to a net 36%, the highest level recorded since June 2020.
Business expansion prospects have also brightened. The percentage of owners who believe it’s a good time to expand their business climbed eight points to 14%, marking the best reading since June 2021.
However, inflation remains a key concern. Twenty percent of respondents identified inflation as their most significant challenge, driven by higher input and labor costs. Inflation narrowly surpassed labor quality as the top issue facing small businesses.
