Beehive State News

The National Federation of Independent Business (NFIB) has released its latest Small Business Optimism Index, which increased by eight points in November to reach 101.7. This marks the highest reading since June 2021, coming after 34 months below the 50-year average of 98. Of the ten index components, nine experienced increases, while one remained unchanged.

Bill Dunkelberg, NFIB's Chief Economist, commented on the report, stating, “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.” Dunkelberg noted that small business owners are particularly hopeful about favorable tax and regulation policies, as well as relief from inflationary pressures, and are eager to expand their operations.

The report highlighted several key figures: the net percentage of owners expecting economic improvement increased by 41 points from October to a net 36%, marking the highest level since June 2020. Additionally, the net percentage of owners considering it a good time to expand their business rose by eight points to 14%, the highest since June 2021. Expectations for higher real sales volumes increased by 18 points to a net 14%, the highest since February 2020.

The NFIB regards its monthly Small Business Optimism Index as a critical measurement of America's small business economy, frequently utilized by the Federal Reserve, Congressional leaders, administration officials, and state legislatures. The index serves as a national snapshot of small-business owners who are members of the NFIB.

Founded in 1943, NFIB has been a nonprofit, nonpartisan, member-driven association dedicated to advocating for small and independent business owners across the nation. The NFIB continues to provide essential insights into the small business sector's conditions and challenges.

For further information on the latest small business developments in Utah, visit www.nfib.com/utah and follow NFIB Utah on X at @NFIB_UT.