U.S. small businesses turned more confident than expected in November on stronger sales growth expectations, but the uncertainty continued to rise as firms delayed their investment plans, survey data from the National Federation of Independent Business showed on Tuesday.
The NFIB Small Business Optimism Index rose 0.8 points to 99.0 in November from 98.2 in October. Economists had expected a modest improvement to 98.4. The current reading is above the 52-year average of 98.
Among the main components of the headline index, six increased, three fell and one was stable. The NFIB said a 9-point increase to 15 percent in the share of firms expecting sales growth contributed most to the rise in the optimism measure.
Meanwhile, the Uncertainty Index rose three points to 91 in November, led by an increase in firms reporting uncertainty about capital expenditure plans over the next three to six months.
“Although optimism increased, small business owners are still frustrated by the lack of qualified workers,” NFIB Chief Economist Bill Dunkelberg said. “Despite this, more firms still plan to create new jobs in the near future.”
The NFIB survey showed that 21 percent of small business owners cited labor quality as their single most important problem, down from the previous month and erased most of the sudden increase in October. Labor quality was listed as the top problem, followed by inflation.
The survey also found that the net percent of owners raising average selling prices rose 13 points from October to a net 34 percent, which was the highest reading since March 2023 and the largest monthly jump in the survey’s history.
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