The Uncertainty Index peaked at yet another record high in October’s Small Business Economic Trends survey, reaching 110 points. However, with the election now in the rearview and a new administration in January, small business owners should have more certainty about the state of business conditions in the coming months.

Signs of this shift were present in last month’s Optimism Index reading, showing that small business owners are feeling more hopeful as we enter the holiday season. This comes despite the continued economic challenges, including inflation, which remains the top operating issue reported by 23% of small business owners, unchanged from September.

Sales growth has slowed in recent months and cost pressures continue to squeeze the bottom line, but small business owners remain hopeful about future conditions.

The full Small Business Economic Trends report is available for further analysis.