US small business optimism increased after Trump's victory

The NFIB Small Business Optimism Index in the US surged to 105.1 in December 2024, its highest level since October 2018, up from 101.7 in November and exceeding the forecast of 100.8.

US small business optimism increased after Trump's victory

This marks the second consecutive month the index has remained above the 51-year average of 98, driven by improved economic sentiment following the election. "Small business owners are more confident and optimistic about the new administration's economic agenda. Expectations for growth, lower inflation, and favorable business conditions have risen, fueled by the anticipation of pro-business policies and legislation in the coming year," said NFIB Chief Economist Bill Dunkelberg.

Further figures

The net percentage of owners expecting the economy to improve jumped 16 points to 52%, the highest since the fourth quarter of 1983. Additionally, the percentage of small business owners who view it as a good time to expand their business increased by six points to 20%. Meanwhile, 20% of owners cited inflation as their most significant challenge, unchanged from November.