Small Business Optimism Hits 3.5-Year High Following Trump Election Victory

The National Federation of Independent Business reports record confidence levels as small-business owners anticipate favorable economic policies under the incoming administration.

The NFIB Small Business Optimism Index surged 8 points in November to 101.7, the highest level since June 2021, marking the largest monthly increase on record.
A net 36% of small-business owners expect economic improvement, the most optimistic outlook since June 2020, while 14% believe it is a good time to expand operations.
Key drivers of optimism include expectations of tax cuts, deregulation, and policies aimed at reducing inflation and fostering economic growth under Donald Trump's administration.
Persistent challenges remain, with 48% of businesses struggling to find qualified workers and inflation still a top concern, though some improvement in labor and wage conditions was noted.
The uncertainty index dropped 12 points from October, reflecting eased concerns following the election, as businesses plan capital investments and anticipate higher sales growth.