Big Sky Times

The latest Small Business Optimism Index from the National Federation of Independent Business (NFIB) suggests a significant shift in sentiment among small business owners. The index shows a 16-point rise from November, reaching a net 52% of owners expecting economic improvement, the highest level since late 1983.

The percentage of owners considering it a good time to expand their business increased by six points to 20%, marking the highest reading since February 2020. Ronda Wiggers, NFIB's state director for Montana, commented on this positive trend: “Finally, some good news for small businesses nationally. Our state has done a great job in being an oasis away from much of the turbulent federal policy winds these past five years. We would really benefit from state and federal policies in sync.”

NFIB's Small Business Optimism Index is widely used by policymakers as an indicator of the health of small businesses across the country. It reflects the perspectives of NFIB-member small-business owners who typically employ between one and nine people with gross sales around $500,000 annually.

Bill Dunkelberg, NFIB Chief Economist, stated: “Optimism on Main Street continues to grow with the improved economic outlook following the election. Small business owners feel more certain and hopeful about the economic agenda of the new administration. Expectations for economic growth, lower inflation, and positive business conditions have increased in anticipation of pro-business policies and legislation in the new year.”

Other highlights from the index include an eight-point rise in expectations for higher real sales volumes to a net 22%, which is also at its highest since January 2020. Additionally, a net 6% of owners plan inventory investment in upcoming months, up five points since November.

For over eight decades, NFIB has represented America's small businesses both at national and state levels as a nonprofit association dedicated exclusively to advocating for independent enterprises.