NFIB Small Business Optimism Index Rose 2.2 Points in October

Washington, DC, November 12, 2024-The NFIB Small Business Optimism Index rose by 2.2 points in October to 93.7. This is the 34th consecutive month below the 50-year average of 98. The Uncertainty Index rose seven points to 110, the highest reading recorded. A seasonally adjusted net negative 20% of small business owners reported higher nominal sales in the past three months, the lowest reading since July 2020.

“With the election over, small business owners will begin to feel less uncertain about future business conditions,” said NFIB chief economist Bill Dunkelberg. “Although optimism is on the rise on Main Street, small business owners are still facing unprecedented economic adversity. Low sales, unfilled jobs openings, and ongoing inflationary pressures continue to challenge our Main Streets, but owners remain hopeful as they head toward the holiday season.”

Key findings include,

*A net negative 20% of all owners (seasonally adjusted) reported higher nominal sales in the past three months, down three points from September and the lowest reading since July 2020.

*Seasonally adjusted, a net 31% reported raising compensation, down one point from September. The last time it was this low was April 2021.

*The net percent of owners expecting higher real sales volumes rose five points to a net negative 4% (seasonally adjusted), the highest reading of this year.

*A net 5% of owners reported paying a higher rate on their most recent loan, down seven points from September and the lowest reading since January 2022.

* Thirty-five percent (seasonally adjusted) of all owners reported job openings they could not fill in the current period, up one point from September.

* Twenty-three percent of owners reported that inflation was their single most important problem in operating their business (higher input and labor costs), unchanged from September and remaining the top issue.