Small business optimism rises to 6-year high after Trump's victory
SMBC Chief Economist Joe Lavorgna reacts to the December jobs report and the potential economic impact of the next Trump administration on the “Big Money Show.”
America's small business owners are feeling better about the economy than they have in six years President-elect Trump He returns to the White House.
The latest National Federation of Independent Business (NFIB) Small Business Optimism Index rose 3.4 points to 105.1 in December, the highest reading since October 2018.
WARRENTON, VA – FEBRUARY 10: Main Street on February 10, 2023 in Warrenton, Virginia. Several groups oppose Amazon's plans to build a data center in the area. (Photo by Bonnie Jo Mount/The Washington Post via Getty Images)
Here it is consecutive second reading The November index is above its 50-year average, after breaking a 2.5-year streak in the same month as Trump's victory.
Meanwhile, the NFIB's Uncertainty Index fell 12 points to 86 last month.
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“Optimism on Main Street continues to grow with an improved economic outlook following the election,” said NFIB Chief Economist Bill Dunkelberg. “Small business owners are more confident and hopeful about the new administration's economic agenda.”
A panel of small business owners discusses their outlook for a second Trump administration during an appearance on The Big Money Show.
Dunkelberg added: “Expectations for economic growth, low inflation and positive business conditions have increased ahead of pro-business policies and legislation in the new year.”
The questionnaire comes as outgoing The Biden-Harris administration continues to tout its economic policies, pointing to growth and low unemployment figures. But high inflation and heavy regulation over the past four years have been felt on Main Street.
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Trump has vowed to reduce regulations as he did in his first term and make permanent the tax cuts he signed when he returned to the Oval Office.
Former President Donald Trump dances during a campaign rally at Crotona Park in the South Bronx, Thursday, May 23, 2024, in New York. (James Devaney/GC Images/Getty Images)
In the latest NFIB survey, the net percentage of owners who expect the economy to improve rose 16 points from November to a seasonally adjusted 52%, the highest since the fourth quarter of 1983.
percentage of small business Owners who believe it's a good time to expand their business also rose six spots to a seasonally adjusted 20%, the highest since February 2020.
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The net percentage of owners expecting higher actual sales volume rose eight points to a net 22%, the highest since January 2020.
According to the December survey, inflation remained the single most important problem for small business owners in running their businesses, with 20% of respondents citing it as their biggest headache. But finding a quality workforce wasn't far behind, with 19% saying it was the biggest challenge.
