According to reports from Epoch Times on January 15, 2025, the National Federation of Independent Business (NFIB) in the United States announced on Tuesday (January 14) that its Small Business Optimism Index rose by 3.4 points to 105.1 last month, the highest level since October 2018, continuing the upward trend after the elections.
This marks the second consecutive month that the index has surpassed the 51-year average of 98. Additionally, the uncertainty index in the survey dropped by 12 points to 86.
Following the conclusion of the U.S. general election on November 5th last year, the Republican Party gained control of the White House and Congress. Small business owners tend to lean towards the Republican Party.
In December, the percentage of small business owners expecting an improvement in economic conditions rose by 16 percentage points to 52%, the highest level since the fourth quarter of 1983. The proportion of small business owners who believe now is a good time to expand their businesses is at its highest level since February 2020. More small business owners anticipate growth in sales adjusted for inflation.
As we enter 2025, despite facing numerous global economic challenges, the U.S. economy seems to be standing strong. Over the past year, driven by robust consumer spending, the U.S. economy has maintained its growth momentum and exceeded expectations. With the Trump administration set to take office, there are many reasons for the public to be optimistic about the U.S. economy.
According to CNN, David Kelly, Chief Global Strategist at JP Morgan Asset Management, stated, “The U.S. economy continues to develop at a very stable pace as always.”
While other sentiment surveys have also shown positive trends post-election, consumers are beginning to adopt a more cautious approach, concerned that President-elect Donald Trump’s proposed policies of imposing high tariffs on imported goods and large-scale deportation of illegal immigrants may raise the cost of living for households.
A survey conducted by the University of Michigan last Friday indicated that consumer expectations for both one-year and long-term inflation in January have significantly increased, but the consumer confidence index has seen a slight decline.
(This article is based on a report from Reuters)