Overview

• The National Federation of Independent Business (NFIB) reported a Small Business Optimism Index of 105.1 in December, the highest since October 2018.
• This marks the second consecutive month the index has exceeded the 51-year average of 98, reflecting growing optimism about the incoming administration.
• Over 50% of small business owners expect economic improvement, while 20% believe it is a good time to expand, the highest level since February 2020.
• Inflation remains the top challenge for 20% of respondents, followed closely by difficulty finding quality labor at 19%.
• The NFIB's Uncertainty Index dropped significantly, signaling increased confidence in anticipated pro-business policies and reduced regulatory burdens under the new administration.