US small business optimism edges up in November
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The news: US small business optimism inched up in November, as sentiment around the sales outlook surged.
The numbers: The National Federation of Independent Business (NFIB) optimism index published on Tuesday rose 0.8 points to 99.0 and remained above its 52-year average of 98. Of the 10 Optimism Index components, six increased, three decreased, and one was unchanged.
The NFIB’s Uncertainty Index rose 3 points to 91 from the month prior.
The context: A 9-point improvement in sales expectations contributed the most to the November index’s rise, with a net 15% of owners anticipating higher sales volumes over the next three months, the NFIB said.
Additionally, a seasonally adjusted net 19% of owners plan to create new jobs in the next three months, up 4 points from October and the highest reading of the year. The last time hiring plans reached this level was in December 2024.
Despite the positive reads, inflation concerns ranked as the second-largest concern for small business owners, falling behind labour quality worries. Owners were also less optimistic about the broader US economic outlook, with just 15% of business owners saying that they expect the economy to improve in the coming months.
What they said: “Although optimism increased, small business owners are still frustrated by the lack of qualified workers. Despite this, more firms still plan to create new jobs in the near future”, said NFIB chief economist Bill Dunkelberg.
The source: NFIB
