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Small business owners optimistic on future of economy in Idaho

Marc Lutz

After 34 months of less-than-stellar confidence in the economy, small business owners are changing their tune.

The National Federation of Independent Business (NFIB) released the results of a poll on Dec. 10 showing a difference in the thoughts of businesses toward the economy.

The NFIB Small Business Optimism Index rose in November to 101.7 points from a 50-year average of 98 points. “Remarkably, of the 10 components in the index, nine increased, none decreased and one remained unchanged,” a release stated.

“This is the best news to come around in a long time,” said Suzanne Budge, state director for NFIB in Idaho. “It’s also an opportunity to remind everyone of the good job Gov. Brad Little and our state legislators did these past three years in building a bulwark against the worst the national economy had to throw at Main Street, Idaho, mom-and-pop enterprises. If they can continue to build on those accomplishments, along with this big change in the national climate, solid economies lie ahead for the foreseeable future.”

NFIB stated the key findings in the report included:

  • The net percent of owners expecting the economy to improve rose 41 points from October to a net 36%, the highest since June 2020. This component had the greatest impact on the overall increase in the Optimism Index.
  • The net percent of small business owners believing it is a good time to expand their business rose eight points to a net 14%. This is the highest reading since June 2021.
  • The net percent of owners expecting higher real sales volumes rose 18 points to a net 14% (seasonally adjusted), the highest reading since February 2020.

“The election results signal a major shift in economic policy, leading to a surge in optimism among small business owners,” said Bill Dunkelberg, chief economist for NFIB. “Main Street also became more certain about future business conditions following the election, breaking a nearly three-year streak of record high uncertainty. Owners are particularly hopeful for tax and regulation policies that favor strong economic growth as well as relief from inflationary pressures. In addition, small business owners are eager to expand their operations.”

NFIB stated that the monthly Optimism Index is “regarded as the bellwether on the health and welfare of the Main Street enterprises that employ half of all workers, generate more net new jobs than large corporations, and gave most [people] the first start in [their working lives].”

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