Small Business Owners in October Were More Optimistic Despite Record Uncertainty | Global News Avenue

Despite record uncertainty ahead of the election, small business owners are more hopeful about the economy in October.

The National Federation of Independent Business (NFIB) Small Business Optimism Index rose 2.2 points in October to 93.7, with owners reporting declining sales and continued inflation.

“Despite rising optimism, small business owners continue to face unprecedented economic adversity,” NFIB Chief Economist Bill Dunkelberg said in a prepared statement. “Low Sales, Unfilled Jobs Vacancies, along with persistent inflationary pressures, continue to challenge our major economies,” the streets are filled with, but homeowners remain hopeful during the upcoming holiday season. ”

Uncertainty surges ahead of election

In October, small business owners also expressed the highest levels of uncertainty in the 51-year history of the survey. The monthly survey of small business owners was conducted ahead of the November election results, so Uncertainty in future data may decrease.

“With the election behind us, small business owners will start to feel less uncertain about future business conditions,” Dunkelberg said.

Moody’s Analytics said small business owners may also be feeling more optimistic after Donald Trump won the presidential election.

Moody’s research shows that small businesses feel better about their economic prospects when a Republican president is elected, and this is even more true when deregulation and tax cuts are part of the fiscal policy package.

“Small businesses face upside risks from the Trump administration’s expected deregulation and the potential for lower corporate taxes,” economist Justin Begley wrote. “However, widespread tariffs are likely to increase operations for many cost, thereby squeezing profits.”