We are big fans of bottom-up statistics. Most often they give a more accurate picture of what is going on than top-down indicators. In the USA, the National Federation of Independent Business (NFIB) with its 300.000 members publishes a Small Business Optimism Index. This index provides valuable insights into the health and outlook of the small business sector, which plays a crucial role in driving economic growth and job creation.
Now, the NFIB published the reading for November of 101,7 up from the previous month of 93,7. This 8 point jump is the largest increase in its 40 year history:
Source: NFIB, Dec 10, 2024
“The election results signal a major shift in economic policy, leading to a surge in optimism among small business owners,” said NFIB Chief Economist Bill Dunkelberg. “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.”
It is amazing to see what positive forces can be unleashed when more economic freedom is promised. Obviously, there is much hope in these numbers and political realities in actually deregulating are challenging. Nonetheless, the voice of 300.000 American small businesses has clearly spoken: More freedom!
The HanseaticHunter
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