Before the November election, small businesses were apprehensive about the future due to persistent inflation and other uncertainties. However, following Donald Trump's victory in his second presidential bid, optimism among small business owners appears to have rebounded.
USA Today reports that small business optimism increased to its highest level since June 2021 and topped the 50-year average, according to NFIB’s monthly survey. Many small businesses intend to ramp up hiring and investment this year.
However, there are still lingering questions about how Trump’s plans for new tariffs and immigration crackdowns will affect inflation and labor costs.
Holly Wade, head of NFIB’s research center, said the details of those policies are unclear, and so business owners haven’t been rattled by them.
But Ryan Sweet, chief U.S. economist of Oxford Economics, remains skeptical, saying small businesses generally prefer Republican administrations that are more likely to cut taxes and regulations – which doesn’t necessarily translate into actual spending and hiring.
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