Evergreen Reporter

The latest Small Business Optimism Index from the National Federation of Independent Business (NFIB) indicates a significant improvement in sentiment among small business owners. The index shows a 16-point increase in the net percentage of owners expecting economic improvement, reaching a net 52% when seasonally adjusted. This marks the highest level since the fourth quarter of 1983.

Additionally, there is an increase in the percentage of small business owners who believe it is a good time to expand their businesses, with this figure rising six points to 20%, seasonally adjusted. This is the highest reading since February 2020.

Patrick Connor, NFIB's state director for Washington, commented on the situation: “We urge the Legislature not to dampen small business optimism in Washington state.” He expressed concern over potential legislative measures that could impose new costs on small businesses and urged lawmakers to support small business recovery instead.

The NFIB’s monthly Small Business Optimism Index is widely regarded as a key indicator of America's small business economy. It is used by various stakeholders including the Federal Reserve and Congressional leaders. The typical NFIB member employs between one and nine people and reports gross sales of about $500,000 annually.

Bill Dunkelberg, NFIB Chief Economist, noted: “Optimism on Main Street continues to grow with the improved economic outlook following the election.” He attributed this optimism to expectations for economic growth and pro-business policies anticipated under the new administration.

Highlights from the latest index include a rise in expectations for higher real sales volumes and increased plans for inventory investment among small business owners.

NFIB has been advocating for America’s small businesses for over 80 years and remains dedicated to supporting these enterprises across all states.