FOR IMMEDIATE RELEASE
Contact: John Kabateck, California State Director, john@kabstrat.com
or Tony Malandra, Senior Media Manager, anthony.malandra@nfib.org

SACRAMENTO, Calif., Dec. 9, 2025—From John Kabateck, state director for NFIB in California, on today’s release of the latest NFIB Small Business Optimism Index, which rose 0.8 points in November to 99.0 and remained above its 52-year average of 98.

“So glad to see NFIB’s last Small Business Optimism Index report of the year end on a positive note. It’s now been more than year since the Index finally turned a corner from running 34 consecutive months below its 52-year average to hovering above the average since November 2024. Congress making the 20% Small Business Tax Deduction permanent instead of letting it laps at the end of the month was a huge shot in the arm for small businesses. The California Legislature could add a booster shot by paying off its $21 billion unemployment insurance loan it has with the federal government, which would relieve small business owners of having to pay the increasing interest charges.”

From NFIB Chief Economist Bill Dunkelberg

“Although optimism increased, small business owners are still frustrated by the lack of qualified workers. Despite this, more firms still plan to create new jobs in the near future.”

Highlights from the Latest NFIB Small Business Optimism Index

• An increase in those expecting real sales to be higher contributed most to the rise in the Optimism Index.
• The Uncertainty Index rose 3 points from October to 91. An increase in owners reporting uncertainty about capital expenditure plans over the next three to six months was the primary driver of the rise in the Uncertainty Index.
• In November, the net percent of owners raising average selling prices rose 13 points from October to a net 34% (seasonally adjusted), the highest reading since March 2023 and the largest monthly jump in the survey’s history.
• When asked to evaluate the overall health of their business, 11% reported it as excellent (down 1 point), and 53% reported it as good (up 2 points). Thirty percent reported the health of their business as fair (down 3 points), and 5% reported it as poor (up 1 point).

NFIB’s monthly Small Business Optimism Index is the gold standard measurement of America’s small business economy. Used by the Federal Reserve, Congressional leaders, administration officials, and state legislatures across the nation, it’s regarded as the bellwether on the health and welfare of the Main Street enterprises that employ half of all workers, generate more net new jobs than large corporations, and gave most of us the first start in our working life. The Optimism Index (aka Small Business Economic Trends report) is a national snapshot of NFIB-member, small-business owners not broken down by state. The typical NFIB member employs between one and nine people and reports gross sales of about $500,000 a year.

Keep up with the latest California small-business news at www.nfib.com. Follow us on X @NFIB_CA and on Facebook @NFIB.CA.

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For over 80 years, NFIB has been advocating on behalf of America’s small and independent business owners, both in Washington, D.C., and in all 50 state capitals. NFIB is a nonprofit, nonpartisan, and member-driven association. Since our founding in 1943, NFIB has been exclusively dedicated to small and independent businesses and remains so today. For more information, please visit nfib.com.

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