“Main Street became more certain about future business conditions following the election, breaking a nearly 3-year streak of record high uncertainty.
WASHINGTON, D.C. (Texas Insider Report) — First it was the immediate post-election surge in the stock market. Then is was record Thanksgiving Weekend shopping and a boom in Consumer Confidence across the nation. Now, business optimism is shooting through the roof. That's the finding from the just-released survey by the NFIB – the National Federation of Independent Business.
Small business optimism has soared in the wake of November's election of Donald Trump – and a Republican controlled Congress – posting the largest one-month gain in the 39-year monthly history of the survey.
The share of firms planning to increase employment rose in November to the highest level since May 2023. And, former White House Economic Advisor Steve Moore (right,) says every indicator since the election shows more confidence – especially among the nation's Small Businesses.
- The NFIB Small Business Optimism Index rose by eight points in November – to 101.7 after 34 months of remaining below the 50-year average of 98.
- This is the highest index reading since June of 2021.
- Of the 10 Optimism Index components,
- 9 increased,
- none decreased, and
- 1 was unchanged.
- And the "Uncertainty Index" – following last month’s record high of 110 – declined 12 points in November to 98.
“The election results signal a major shift in economic policy, leading to a surge in optimism among small business owners,” said NFIB Chief Economist Bill Dunkelberg.
“Main Street also became more certain about future business conditions following the election, breaking a nearly three-year streak of record high uncertainty.
"Owners are particularly hopeful for tax and regulation policies that favor strong economic growth as well as relief from inflationary pressures. In addition, small business owners are eager to expand their operations,” Dunkelberg said.
“Main Street also became more certain about future business conditions following the election, breaking a nearly three-year streak of record high uncertainty.
"Owners are particularly hopeful for tax and regulation policies that favor strong economic growth as well as relief from inflationary pressures. In addition, small business owners are eager to expand their operations,” Dunkelberg said.
The one danger spot: "20% of owners reported that inflation was their single most important problem in operating their business."
Moore – a former Wall Street Journal Editorial Page writer and Chief Economist for The Texas Insider – says he hopes Federal Reserve Bank Chairman Jerome Powell is paying attention.
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