NFIB’s Small Business Optimism Index Declines Further in November

The National Federation of Independent Business (NFIB), one of the largest small business associations in the US, reported today (12-14-21) that their NFIB Small Business Optimism Index dropped -0.2 points to a reading of 98.4 in November. Four of the 10 components improved, while 4 declined and 2 remained unchanged. The NFIB Uncertainty Index dropped -4 points to a reading of 63.

In a statement prepared for the release of the November Index, NFIB Chief Economist Bill Dunkelberg said, “As the end of the year nears, the outlook for business conditions is not encouraging to small business owners as lawmakers propose additional mandates and tax increases. Owners are also pessimistic as many continue managing challenges like rampant inflation and supply chain disruptions that are impacting their businesses right now.”

Other key findings from the Index include owners expecting better business conditions over the next six months fell -1 points to a net negative of 38%, tied for the 48-year record low reading. This indicator has dropped 18 points over the past four months to its lowest reading since November 2012. Forty-eight percent of owners reported job openings that could not be filled, a decrease of one point from October.