The Optimism Index rose by 8 points in November to 101.7, after 34 months of remaining below the 50-year average of 98. This is the highest reading since June 2021. Of the 10 Optimism Index components, nine increased, none decreased, and one was unchanged. Following last month’s record high of 110, the Uncertainty Index declined 12 points as business owners became more certain following the election.
A seasonally adjusted net 18% of owners plan to create new jobs in the next three months, up three points from October. The percentage of owners thinking it’s a good time to expand was 14%, up eight percentage points (points) from the previous month. 36% of all owners reported job openings they could not fill in the current period, up 1 point from October.
A net negative 13% of all owners (seasonally adjusted) reported higher nominal sales in the past three months, up 7 points from October’s worst reading since July 2020. The net percentage of owners raising average selling prices was 24%, up 3 points from October. The net percentage of owners expecting higher real sales volumes rose 18 points to a net 14%. The frequency of reports of positive profit trends was a net negative 26% (seasonally adjusted), up 7 points from October.
4% of owners reported that all their borrowing needs were not satisfied, up 2 points from October. 26% reported all credit needs met (up 3 points) and 62% said they were not interested in a loan (down 2 points). A net 7% reported their last loan was harder to get than in previous attempts (up 1 point).
Read the NFIB report.
