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Small-Business Optimism Edges Up to 99 as Price Hikes Surge

A record jump in firms raising prices signals lingering strain despite firmer sentiment.

Overview

  • The NFIB Small Business Optimism Index rose 0.8 point in November to 99, just above its long-term average of 98 but below last year’s 101.7.
  • A net 34% of owners raised selling prices, a 13-point monthly surge that NFIB says is the largest on record, while a net 30% plan further increases over the next three months.
  • Labor quality remained the top concern, cited by 21% of owners, with hiring challenges persisting even as more firms plan to add jobs.
  • Supply chain effects intensified, with 64% reporting some impact and 7% citing a significant impact, both higher than in October.
  • Longer-term views stayed weak, with expectations for better conditions down 32 points since January and only 13% calling it a good time to expand, though some reported relief from lower gas prices and financing rates.