In December, the NFIB Small Business Optimism Index rose 0.5 points to 99.5, remaining above the 52-year average of 98. A rise in those expecting better business conditions is attributed to the increase.
Of the 10 Optimism Index components, five were unchanged from November, three decreased, and two increased.
The Uncertainty Index fell 7 points to 84, the lowest rating since June 2024.
“2025 ended with a further increase in small business optimism,” NFIB Chief Economist Bill Dunkelberg said. “While Main Street business owners remain concerned about taxes, they anticipate favorable economic conditions in 2026 due to waning cost pressures, easing labor challenges, and an increase in capital investments.”
Other findings include:
The number of small-business owners reporting that supply chain disruptions were affecting their business to some degree was 64 percent, unchanged from November.
The net percent of owners raising their average selling prices fell 4 points to a seasonally adjusted net 30 percent. Those planning to increase prices in the next three months fell 2 points to a seasonally adjusted net 28 percent.
When asked to evaluate the overall health of their business, 54 percent of small-business owners rated it good, 34 percent rated it fair, 9 percent rated it excellent and 3 percent rated it poor.