Small business owners’ optimism saw a significant spike after President Donald Trump won the White House and Republicans took both chambers of Congress, according to the latest survey data.
The National Federation of Independent Businesses released the data Monday, which showed that small business owners surveyed after the election had the highest optimism since June 2021.
“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 in a statement.
According to the NFIB, the biggest factor in that optimism came because the net percent of owners expecting economic improvement rose a whopping 41 points to the highest levels since Trump was last in office in June 2020.
“Main Street also became more certain about future business conditions following the election, breaking a nearly three-year streak of record high uncertainty,” he added.
Elevated inflation has been crushing small businesses in recent years, especially since they do not have the same access to capital as larger businesses that allows them to weather those economic storms.
That inflation, on the heels of the COVID-19 pandemic, has left many small business owners struggling.
“The net percent of owners expecting higher real sales volumes rose 18 points to a net 14% (seasonally adjusted), the highest reading since February 2020,” NFIB said. “The net percent of small business owners believing it is a good time to expand their business rose eight points to a net 14%. This is the highest reading since June 2021.”
Trump has pledged to lower taxes and decrease energy costs by expanding domestic energy production. He has also vowed to cut the size of government, generally seen as the source of costly regulations for businesses.
“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,” Dunkleberg said.
