News

The NFIB Small Business Optimism Index rose eight points in November to 101.7, the highest rating since June 2021 and finally rising above the 50-year average of 98 after 34 consecutive months below the average. Of the 10 components included in the index, nine increased and one was unchanged. After October’s record high of 110, the Uncertainty Index declined 12 points to 98, as expected following the election.

Despite increased optimism, inflation is still the top concern for many small business owners, with 20% identifying higher input and labor costs as their primary issue, surpassing the issue of labor quality by one point. In November, 36% of small business owners reported jobs they could not fill, up 1% from October.

A net 28% of small business owners planned price hikes in November, up 2% from the month prior. A net 32% of small business owners reported raising compensation, up one point from October. Continuing the trend from October, a net 5% of owners reported paying a higher rate on their most recent loan, the lowest reading since January 2022. Profitability remained under pressure, with a net negative 26%, but was the highest (least negative) reading this year. Of those reporting lower profits, 32% claimed weaker sales.

The outlook for general business conditions had a positive reading for the first time since November 2020, jumping an incredible 41 points. While small business owners are still facing unprecedented economic adversity, owners remain hopeful for an improved political climate and as they head into the holiday season.