The National Federation of Independent Business (NFIB) reported an increase in its Small Business Optimism Index for November, rising by 0.8 points to reach 99.0. This marks the second consecutive year the index has remained above its 52-year average of 98.
John Kabateck, NFIB’s state director for California, commented on the report: “So glad to see NFIB’s last Small Business Optimism Index report of the year end on a positive note. It’s now been more than year since the Index finally turned a corner from running 34 consecutive months below its 52-year average to hovering above the average since November 2024. Congress making the 20% Small Business Tax Deduction permanent instead of letting it laps at the end of the month was a huge shot in the arm for small businesses. The California Legislature could add a booster shot by paying off its $21 billion unemployment insurance loan it has with the federal government, which would relieve small business owners of having to pay the increasing interest charges.”
Bill Dunkelberg, chief economist at NFIB, stated: “Although optimism increased, small business owners are still frustrated by the lack of qualified workers. Despite this, more firms still plan to create new jobs in the near future.”
Key findings from November’s index include an increase in owners expecting higher real sales, which contributed most to overall optimism. The Uncertainty Index also rose by three points from October to reach 91, driven mainly by greater uncertainty about capital expenditure plans over coming months.
Additionally, there was a notable rise in owners reporting increases in average selling prices; this figure jumped by 13 points compared to October and reached a net 34% (seasonally adjusted), marking both the highest level since March 2023 and the largest monthly jump recorded in survey history.
Business health evaluations among respondents showed that 11% considered their business health excellent (a decrease of one point), while those rating it as good rose two points to 53%. Thirty percent rated their business as fair (down three points), and five percent described it as poor (up one point).
The NFIB Small Business Optimism Index is recognized as a key measure used by institutions such as the Federal Reserve and legislative bodies nationwide. It provides national-level insights into trends affecting small businesses employing between one and nine people with typical annual gross sales around $500,000.
NFIB continues its advocacy work for independent businesses across all states and at the federal level through policy engagement and research.
