Beehive State News

The latest Small Business Optimism Index from the National Federation of Independent Business (NFIB) suggests a positive shift for small business owners, with a notable increase in economic confidence. The index shows that the net percentage of owners expecting economic improvement rose by 16 points to a net 52%, marking the highest level since late 1983.

Additionally, there is an uptick in expansion sentiment among small business owners. The percentage believing it is a good time to expand increased by six points to 20%, which is the highest reading since February 2020.

Bill Dunkelberg, NFIB Chief Economist, commented on this trend: "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 key findings include an eight-point rise in owners expecting higher real sales volumes, reaching a net 22%, which is also at its peak since January 2020. Furthermore, there is an increase in inventory investment plans among owners.

The NFIB's Small Business Optimism Index serves as a crucial indicator for America's small business economy and is widely used by policymakers across various levels of government.