Small business optimism rose to 105.1 points in December, the highest reading since October 2018, the National Federation of Independent Business’ Small Business Optimism Index report found.
December’s reading is the second consecutive month above the 51-year average of 98.
“Optimism on main street continues to grow with the improved economic outlook following the election,” NFIB Chief Economist Bill Dunkelberg said in a statement. “Small business owners feel more certain and hopeful about the economic agenda of the new administration. Expectations for economic growth, lower inflation and positive business conditions have increased in anticipation of pro-business policies and legislation in the new year.”
A net 52% of business owners said in December they expect the economy to improve. That’s a 16-point increase and the highest percentage since 1983. Meanwhile, 20% of small business owners believe it is a good time to expand their business—the highest reading since February 2020.
Read the full NFIB report here.
