A recent survey shows that small business owners are more optimistic about the economy after the election.
The National Federation of Independent Businesses’ Small Business Optimism Index rose eight points to 101.7 in November, the highest reading since June 2021.
The uncertainty index fell 12 points to 98 in November, from a record pre-election high of 110 in October.
NFIB chief economist Bill Dunkelberg said small business owners gained more certainty about future business conditions after the presidential election, breaking a nearly three-year streak of record high uncertainty.
“Owners are particularly hopeful of tax and regulatory policies that promote strong economic growth and provide relief from inflationary pressures,” he said in a statement. “Additionally, small business owners are eager to expand their operations.”
The net percentage of owners expecting the economy to improve rose 41 points from October to a net 36%, the highest since June 2020.
Some owners are also hoping that 2025 will be a good time to grow. The percentage of small business owners who believe it is a good time to expand their business increased eight points to 14%. This is also the highest level since June 2021.
Although inflation has decreased, it remains a major concern for owners. Twenty percent of owners reported that inflation was their main problem running their business (higher input and labor costs). It surpassed labor quality as the most important issue by one point.