January 14, 2025
The Small Business Optimism Index rose 3.4 points to 105.1 in December, the highest since October 2018
What it means: The December Small Business Optimism Index rose 3.4 points to 105.1, the highest reading since October 2018. Small Business owners feel more certain and hopeful about the new administration’s economic agenda and anticipated pro-business policies and legislation in the new year.
Our take: “Optimism on Main Street continues to grow with the improved economic outlook following the election,” said NFIB Chief Economist Bill Dunkelberg. “Finding qualified workers remains a major headwind for stronger job growth while compensation increases have softened.”
The December Small Business Economic Trends report was released with optimism continuing its surge due to a new administration with pro-business policies taking over in January. Following November’s Optimism Index of 101.7, it increased to 105.1, its highest level since October 2018. Inflation remains the top issue among small business owners, with 20% reporting it as their top operating issue, unchanged from November. Labor quality followed at 19%, one point shy of matching inflation as the most important problem.
Small firms continue to have high levels of job openings available. Thirty-five percent of all small business owners reported job openings they could not fill in December, down one point from November. A net 24% (seasonally adjusted) plan to raise compensation in the next three months, down four points from November.
The full Small Business Economic Trends report and NFIB Jobs Report for December is now available.
NFIB is a member-driven organization advocating on behalf of small and independent businesses nationwide.
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