SACRAMENTO >> Small business optimism increased in November, according to the National Federation of Independent Business (NFIB) Index of Small Business Optimism.
“On the national level, we haven’t seen this kind of optimism in 34 years, and we’ve seen it only once in the 44 years that NFIB has been conducting this research,” said NFIB California Communications Director Shawn Lewis. “Small business owners across the country are exuberant about the economy, and they are ready to lead the U.S. economy in a period of robust growth.”
“This news is almost bittersweet for California. As reform at the federal level benefits small businesses across the country, our job creators have even less incentive to remain or grow in California with our incredibly high state taxes and labor regulations. As Washington embraces changes to support our job creators, including much-needed tax reform, Sacramento must answer the call and make policy changes to keep struggling small businesses in our state,” Lewis added.
The Index gained 3.7 points in November, a sharp increase over what was already a near-record performance the previous month. Eight of 10 components posted gains, including a stunning and rare 16-point gain in Expected Better Business Conditions and a 13-point jump in Sales Expectations.
“This is the second-highest reading in the 44-year history of the Index,” added NFIB Chief Economist Bill Dunkelberg. “The NFIB indicators clearly anticipate further upticks in economic growth, perhaps pushing up toward four percent GDP growth for the fourth quarter. This is a dramatically different picture than owners presented during the weak 2009-16 recovery.
Job Creation plans increased six points last month, providing more evidence of a strong labor market. The number of owners who said it’s a Good Time to Expand rose four points; Inventory Plans increased by three points; Inventory Satisfaction increased by three points; and Actual Earnings Trend moved up two points.
The data was collected before the end of net neutrality, which may impact small businesses.
For more information about NFIB, please visit www.nfib.com.
