The NFIB Small Business Optimism Index increased by 0.8 points in November, reaching 99.0 and staying above its 52-year average of 98, according to the National Federation of Independent Business (NFIB). Six out of ten components in the index improved, three declined, and one was unchanged. The main contributor to the increase was a higher share of business owners expecting real sales growth.
The Uncertainty Index also rose by three points from October to 91, primarily due to more owners expressing uncertainty about capital expenditure plans over the next three to six months.
“Although optimism increased, small business owners are still frustrated by the lack of qualified workers,” said NFIB Chief Economist Bill Dunkelberg. “Despite this, more firms still plan to create new jobs in the near future.”
In conjunction with its November report, NFIB released a new episode of its “Small Business by the Numbers” podcast. Hosted by Holly Wade, Executive Director of the NFIB Research Center, and Peter Hansen, Director of Research and Policy Analysis, the podcast discusses data and economic trends affecting small businesses across the country.
Among key findings for November:
- The net percentage of owners raising average selling prices rose sharply by 13 points from October to a net 34% (seasonally adjusted), marking both the highest reading since March 2023 and the largest monthly jump in survey history.
- Twenty-one percent of business owners identified labor quality as their most important problem—down six points from October but still leading other concerns.
- Inflation was cited as the second most significant issue at 15%, up three points from October.
- The share expecting higher real sales volumes climbed nine points to a net 15% (seasonally adjusted).
- The average interest rate paid on short-term loans dropped to 7.9%, down 0.8 points from October—the lowest since May 2023.
- When assessing their overall business health: 11% rated it excellent (down one point), while 53% described it as good (up two points). Thirty percent called it fair (down three), and five percent reported poor health (up one point).
- Sixty-four percent reported that supply chain disruptions affected their operations at least somewhat—a four-point rise over October.
Hiring remains challenging for many businesses. A seasonally adjusted net 19% plan to add jobs within three months—the highest reading this year—while thirty-three percent had unfilled job openings they could not fill in November. Of those hiring or trying to hire, eighty-nine percent said there were few or no qualified applicants available.
Fifty-two percent made capital expenditures during the past six months—a decrease from October—with spending focused mostly on equipment acquisition.
Other results show expectations for better business conditions have fallen steadily throughout the year; in November they dropped another five points compared with October. Only thirteen percent believe now is a good time for expansion—a figure unchanged month-over-month but considered weak relative to previous economic expansions.
The survey draws responses randomly from NFIB members each month; data collection began quarterly in late 1973 and shifted to monthly surveys starting in 1986.
