Small business optimism rises in latest NFIB index

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It looks like small business owners are getting more optimistic about business conditions. 

According to the latest Small Business Optimism Index from the National Federation of Independent Businesses, optimism rose 0.5 points in December to 99.5 and remained above its 52-year average of 98.  

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. 

NFIB Pennsylvania State Director Greg Moreland commented on the report. “Pennsylvania small business owners reported higher optimism to close out 2025 but are still concerned about taxes and the tight labor market,” Moreland said. “Members of the General Assembly should take note and avoid exacerbating these challenges by adding more expenses on Main Street.” 

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 30%. A net 28% plan to increase prices in the next three months, which is down 2 points. 

The percentage of owners expecting better business conditions rose 9 points from November to 24%, contributing the most to the rise in the Optimism Index. This was the first increase since July. 

In December, 64% of small business owners reported that supply chain disruptions were affecting their business to some degree, unchanged from November. 

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 new jobs in the next three months, down 2 points from November. 

Among owners reporting lower profits, 41% blamed weaker sales, 13% cited the rise in the cost of materials, and 12% cited usual seasonal change.  

Among owners reporting higher profits, 64% cited sales volume, 14% cited usual seasonal change, and 3% cited higher selling prices.