The latest NFIB Small Business Optimism Index showed a big breakthrough in the attitudes Main Street entrepreneurs now have about the economy, rising in November to 101.7 from its 50-year average of 98, according to the National Federation of Independent Businesses (NFIB).
The mammoth change breaks a 34-consecutive-month drought below the half-century average. Remarkably, of the 10 components in the index, nine increased, none decreased, and one remained unchanged.
“Montana’s small business owners have had a little better attitude toward the economy than those in other states thanks primarily to our Legislature’s understanding of their importance to the jobs they create and the deep involvement they have in their communities,” said Ronda Wiggers, state director for NFIB in Montana. “In fact, you could say Montana held down the fort while waiting for the national picture to change. Should there be an improved state and federal policy sync, a prosperous economy lies ahead for all.”
“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.” Key Findings from Report include:
* The net percent of owners expecting the economy to improve rose 41 points from October to a net 36%, the highest since June 2020. This component had the greatest impact on the overall increase in the Optimism Index.
* The net percent of small business owners believing it is a good time to expand their business rose eight points to a net 14%. This is the highest reading since June 2021.
* The net percent of owners expecting higher real sales volumes rose 18 points to a net 14% (seasonally adjusted), the highest reading since February 2020.
NFIB’s monthly Small Business Optimism Index is the gold standard measurement of America’s small business economy. Used by the Federal Reserve, Congressional leaders, administration officials, and state legislatures across the nation, it’s regarded as the bellwether on the health and welfare of the Main Street enterprises that employ half of all workers, generate more net new jobs than large corporations, and gave most of us the first start in our working life. The Small Business Optimism Index is a national snapshot of NFIB-member, small-business owners not broken down by state. The typical NFIB member employs between one and nine people and reports gross sales of about $500,000 a year.
