Big Sky Times

The latest NFIB Small Business Optimism Index has shown a significant increase in confidence among small business owners about the economy. The index rose to 101.7 in November, surpassing its 50-year average of 98. This marks the end of a 34-month streak of being below the average. Notably, nine of the ten components in the index saw increases, with one remaining constant.

Ronda Wiggers, the Montana State Director for NFIB, commented on the state-specific aspects of this trend. "Montana’s small business owners have had a little better attitude toward the economy than those in other states thanks primarily to our Legislature’s understanding of their importance to the jobs they create and the deep involvement they have in their communities," she said. Wiggers added that should there be alignment in state and federal policies, a strong economy could ensue for all.

Bill Dunkelberg, NFIB Chief Economist, attributed this optimism to recent political changes. "The election results signal a major shift in economic policy, leading to a surge in optimism among small business owners." He highlighted that business owners are hopeful for policies that support economic growth and reduce inflationary pressures, expressing eagerness to expand operations.

An overview of the findings shows substantial changes in key outlooks: the net percent of owners expecting economic improvement rose by 41 points to a net 36%, marking the highest since June 2020; the belief that it's a good time to expand business increased by eight points to a net 14%; and expectations for higher real sales volumes rose by 18 points to a net 14%.

The Small Business Optimism Index is highly regarded as an indicator of the small business economy's health, utilized by the Federal Reserve and various governmental bodies. The index reflects national trends among NFIB-member small businesses.

NFIB has served small and independent business owners for 80 years, functioning as a nonprofit, nonpartisan organization. It offers representation for these enterprises across the United States, advocating for their interests in both federal and state capitals.

For additional information on Montana small business news, including this report, visit www.nfib.com/montana or follow on social media.