US Small Business Optimism Reaches Six-Year High

U.S. small business confidence surged to its highest level in over six years in December, with the National Federation of Independent Business (NFIB) Small Business Optimism Index rising 3.4 points to 105.1, surpassing expectations. This increase follows the November election, which saw Republicans gain control of the White House and Congress, contributing to improved optimism among business owners. Notably, 52% of owners expect the economy to improve, marking a significant rise of 16 points from November and the highest since 1983. The Uncertainty Index also decreased by 12 points to 86, reflecting a more stable outlook. Despite the positive sentiment, inflation remains a primary concern, with 20% of owners still citing it as their top issue. Many owners are now planning expansions and investments, indicating a shift towards more optimistic future business conditions.