The National Federation of Independent Business (NFIB) has released its latest Small Business Optimism Index, showing a significant rise in November. The index increased by eight points to 101.7, marking the highest level since June 2021 and surpassing the 50-year average of 98 after 34 months below it. Nine out of ten components of the index saw an increase, while one remained unchanged.
Michael Iosua, NFIB's Hawaii State Director, attributed part of this national improvement to local legislative efforts. “I like to think Hawaii helped kick off this national turnaround with passage of House Bill 2404, a historic tax reduction bill that Gov. Josh Green signed into law June 3,” said Iosua.
NFIB Chief Economist Bill Dunkelberg noted a change in economic policy following recent election results as a key factor for this optimism among small business owners. "The election results signal a major shift in economic policy, leading to a surge in optimism among small business owners," he said. Owners are hopeful for favorable tax and regulation policies and relief from inflationary pressures.
Key findings from the report include a significant rise in the percentage of owners expecting economic improvement, which rose by 41 points to net 36%, the highest since June 2020. The number of small business owners believing it's a good time to expand increased by eight points to net 14%, also reaching its highest since June 2021.
The NFIB's Small Business Optimism Index is widely regarded as an important measure of America's small business economy and is used by various government bodies as an indicator of economic health. It reflects sentiments from NFIB-member small-business owners across the nation.
NFIB has been advocating for small businesses for over eight decades and continues to support independent business owners at both federal and state levels.
