Bill Dunkelberg talks about the outlook for small businesses and how the election will decide whether optimism returns
Almost a month into 2024, NFIB Chief Economist Bill Dunkelberg said: Outlook for small and medium-sized enterprises over the next year And how will November's election results determine whether optimism changes for the better? The NFIB Small Business Optimism Index is anything but optimistic, hovering around 91 for the past 24 months, below the 50-year average of 98.
“Small business owners remain very pessimistic about the economic outlook,” Dunkelberg said. “The November election is likely to again have a big impact on optimism, spending and growth. ”
“NFIB's Small Business Optimism Index starts 2023 at 91, leading to an economy in 2024 where economic growth is expected to worsen,” it added. “Only 10% of respondents expect the economy to improve by the middle of this year, while 44% expect it to worsen. Only 21% expect actual sales volumes to increase. , twice as many people expect it to decline. 6% think it's a good time to expand their business, while 61% think it's not.”
While there is little optimism about whether consumers will flood the economy with cash, the November election will be key to whether small business optimism adjusts anyway.
Read Dunkelberg's full editorial. “Happy New Year to small businesses?” Learn more about the economic changes that may occur this year.
