The NFIB Small Business Optimism Index rose 0.5 point in December to 99.5, staying above its 52-year average of 98.
Of the 10 Optimism Index components, two increased, three declined, and five were unchanged. An increase in those expecting better business conditions primarily drove the rise in the Optimism Index. The Uncertainty Index fell 7 points from November to 84, the lowest reading since June 2024.
“While optimism is improving nationally in NFIB’s survey, New Jersey’s small business owners are still contending with an onerous state tax and regulatory environment,” said NFIB State Director Eileen Kean. “Additionally, as the monthly survey continues to show, many of New Jersey’s Main Street businesses are still having a tough time finding and keeping good workers. That makes it harder for them to maintain the operating hours and provide the level of service their customers expect.”
Key findings of the nationwide report include:
- Twenty percent of small business owners reported taxes as their single most important problem, up 6 points from November and ranking as the top problem. This is the highest reading since May 2021.
- In December, both actual and planned prices fell from the previous month. The net percent of owners raising average selling prices fell 4 points from November to a net 30% (seasonally adjusted). A net 28% (seasonally adjusted) plan to boost prices in the next three months (down 2 points).
- A net negative 3% of owners reported paying a higher interest rate on their most recent loan, down 5 points from November and the lowest reading since January 2021.
- The net percent of owners expecting better business conditions rose 9 points from November to a net 24% (seasonally adjusted), contributing the most to the rise in the Optimism Index. This was the first increase since July.
- When asked to evaluate the overall health of their business, 9% rated it excellent (down 2 points), 54% rated it good (up 1 point), 34% rated it fair (up 4 points), and 3% rated it poor (down 2 points).
As reported in NFIB’s monthly jobs report, a seasonally adjusted 33% of all small business owners reported job openings they could not fill in December, unchanged from November. Unfilled job openings remain above the historical average of 24%.
Of the 53% of owners hiring or trying to hire in December, 91% reported few or no qualified applicants for the positions they were trying to fill. A seasonally adjusted net 17% of owners plan to create jobs in the next three months, down 2 points from November.
