The National Federation of Independent Business (Washington, D.C.) “Small Business Optimism Index” rose 0.5 points in December to 99.5 and remained above its 52-year average of 98. Of the 10 "Optimism Index" components, two increased, three decreased and five were unchanged. An increase in those expecting better business conditions primarily drove the rise. Meanwhile, the "Uncertainty Index" fell 7 points from November to 84, the lowest reading since June 2024.
“While Main Street business owners remain concerned about taxes, they anticipate favorable economic conditions in 2026 due to waning cost pressures, easing labor challenges and an increase in capital investments,” NFIB Chief Economist Bill Dunkelberg said.
That said, unfilled job openings remain above the historical average of 24%, according to NFIB’s monthly jobs report. Of the 53% of owners hiring or trying to hire in December, 91% reported few or no qualified applicants for the positions they were trying to fill. A seasonally adjusted net 17% of business owners plan to create new jobs in the next three months, down 2 points from November.
