National Federation of Independent Business (NFIB) small business optimism soared in November, hitting 101.7 (street was expecting 94.7). The index has risen for a 3rd consecutive month, and 7 out of the last 8 months. A reading of 101.7 is the highest in 41 months, and marks the first time since December 2021 that the index is above the historical average (orange line).
NFIB Chief Economist Bill Dunkelberg:
“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.”
The index rose 8 points in November alone. This is the largest monthly increase in the data sets 38 year history. The closest comparison we have was back in December 2016, when the index jumped 7.4 points. Small businesses employ roughly 2/3rds of the nations workforce today. These policies should be a welcome relief for small business owners. Hopefully it will trickle down.More By This Author:Jobs Report Exceeds Expectations As Consumer Sentiment Remains Below Average For 31 Straight MonthsTrade Deficit Decreases While Total Trade Falls By Most In 2 Years ISM Services PMI And ADP Employment Report
