The Small Business Optimism Index saw a notable increase in December, rising by 3.4 points to reach 105.1, marking its highest level since October 2018. This rise reflects growing confidence among small business owners regarding the new administration's economic agenda and anticipated pro-business policies.

NFIB Chief Economist Bill Dunkelberg commented on the trend, stating, “Optimism on Main Street continues to grow with the improved economic outlook following the election.” However, he noted that finding qualified workers remains a significant challenge for job growth, despite some easing in compensation increases.

The December Small Business Economic Trends report highlights this surge in optimism attributed to the incoming administration's pro-business stance set to take effect in January. The index rose from November’s figure of 101.7 to 105.1. Inflation remains a primary concern for small business owners, with 20% identifying it as their top operating issue, consistent with November's data. Labor quality is also a pressing issue at 19%, just behind inflation.

Job openings remain plentiful among small firms, with 35% of all small business owners reporting unfilled positions in December, a slight decrease from November. Meanwhile, a net 24% of businesses plan to raise compensation over the next three months, which is down four points from November.

The complete Small Business Economic Trends report and NFIB Jobs Report for December are now available for review.