(The Center Square) – A small business advocacy group wants Ohio lawmakers to capitalize on growing optimism as one session ends and another nears a beginning.
For the first time in nearly three years, the National Federation of Independent Business Optimism Index rose above its 50-year average of 98 following the November elections.
The index, which was at 93 in October, climbed eight points to 101.7 in November – the highest reading since June 2021.
Of the 10 Optimism Index components, nine increased, none decreased and one was unchanged. Following last month’s record high of 110, the Uncertainty Index fell 12 points in November to 98.
“The election results signal a major shift in economic policy, leading to a surge in optimism among small business owners,” NFIB Chief Economist Bill Dunkelberg said. “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.”
While state-specific data is unavailable, NFIB Ohio State Director Chris Ferruso used the new figures to push lawmakers to go after pro-growth policies.
“Following the election, our small business members are ready to grow their businesses and create more jobs in their communities,” Ferruso said. “With optimism at its highest level in nearly three years, it is crucial that our elected officials in Columbus build on this momentum and continue to enact policies that will further grow and strengthen Ohio’s economy.”
The report also showed 36% of small business owners expected the economy to improve, the highest number since June 2020. Also, the net percent of owners expecting higher sales volumes rose 18 points.
Inflation continued to be the biggest concern as 22% said it’s the most important problem in operating their business.