Mountain State Times

The National Federation of Independent Business (NFIB) reported a significant rise in the Small Business Optimism Index for November, reaching 101.7 points. This is the highest level recorded since June 2021 and marks an increase of eight points from October. The index had remained below its 50-year average of 98 for nearly three years.

Bill Dunkelberg, NFIB Chief Economist, attributed this surge to recent election results which suggest a major shift in economic policy. "The election results signal a major shift in economic policy, leading to a surge in optimism among small business owners," he said. Dunkelberg noted that small business owners are hopeful for favorable tax and regulation policies and relief from inflationary pressures.

Gil White, NFIB West Virginia State Director, expressed optimism regarding the potential impact on local businesses. "West Virginia small businesses are expecting a shift in federal economic policies and regulations, which has led to the highest level of optimism in nearly three years," he stated.

Key findings from the report highlight several positive trends: A net percent of owners expecting economic improvement rose by 41 points from October to a net 36%, while those considering it a good time to expand increased by eight points to net 14%. Additionally, there was an increase in plans for capital outlays and reports of higher real sales volumes.

Despite these positive indicators, some challenges persist. Twenty percent of owners identified inflation as their most pressing issue, slightly down from previous months but still surpassing labor quality concerns. Labor market difficulties continue with many reporting unfilled job openings due to a lack of qualified applicants.

In terms of pricing strategies, there were widespread reports of price hikes across sectors such as wholesale, finance, retail, and services. Furthermore, compensation increases remain strong with plans for further raises over the next three months.

Overall profit trends improved compared to earlier this year; however, financing challenges remain for some businesses despite generally satisfied credit needs among most respondents.

This data is collected through monthly surveys conducted by the NFIB Research Center since 1986 and reflects responses from randomly selected members.