December NFIB Optimism Index Shows Small Businesses Feeling Confident to Start 2017
The NFIB’s latest Small Business Economic Trends report shows small business owners’ optimism increased in December following the presidential election. The index jumped up 7.4 points to 105.8, the highest level since 2004, mostly due to a major jump in the number of small business owners expecting better business conditions, which rose from 12 percent in November to 50 percent in December. NFIB President and CEO Juanita Duggan said, “We haven’t seen numbers like this in a long time. Small business is ready for a breakout and that can only mean very good things for the U.S. economy.” NFIB Chief Economist Bill Dunkelberg added, “The December results confirm the sharp increase that we reported immediately after the election.” Bloomberg News reports that seven of the 10 subcomponents of the NFIB index were up in December, with 73 percent of the monthly increase “due to more upbeat views about the outlook for sales and the economy.” The result of half of the 619 small business owners who responded to the survey saying they anticipated better business conditions over the next six months was the largest share “since March 2002,” Bloomberg notes.
What This Means For Small Businesses
Small business owners have been stuck in “wait and see” throughout much of 2016 as the economy barely churned and the 2016 elections took up much of Congress’ time. The latest NFIB Small Business Economic Trends survey results demonstrate that small businesses are looking forward to a brighter future in 2017, particularly in the areas of future sales and the general direction of the US economy.
MarketWatch also covers the latest NFIB Small Business Economic Trends report.
Note: this article is intended to keep small business owners up on the latest news. It does not necessarily represent the policy stances of NFIB.