Small Business Optimism Falls in November

The NFIB Small Business Optimism Index declined 2.6 points in November, measuring 101.4. Despite the November decrease, the index remains well above the 47-year historical average reading of 98. While business conditions have improved, many respondents reported increased uncertainty driven by the increased spread of COVID-19 cases.

A seasonally adjusted net 21.0% of owners plan to create new jobs, up 3 points. The percent of owners thinking it’s a good time to expand decreased to 12.0%. Thirty-four percent of respondents reported job openings they could not fill in the current period, up 1 point from October’s number.

A net 5.0% of all owners reported higher nominal sales in the past three months, down 1 point from October. The net percent of owners expecting higher real sales volumes decreased 1 point to a net 10.0% of owners.

Two percent of owners reported in that their borrowing needs were not fully satisfied. Twenty-five percent reported all credit needs met (down 4 points) and 58.0% said they were not interested in a loan (up 2 points). A net 2.0% reported their last loan was harder to get than in previous attempts (down 1 point).

Read the NFIB report.