The NFIB Small Business Optimism Index rose 0.5 points in December to 99.5 and remained above its 52-year average of 98.
An increase in those expecting better business conditions primarily drove the rise in the Optimism Index. The Uncertainty Index fell 7 points from November to 84, the lowest reading since June 2024.
“The rise in optimism is a positive signal for Wisconsin, especially with a net 24% of owners now expecting better business conditions in the coming months,” said Luke Bacher NFIB Wisconsin director. “However, the 5-point jump in owners raising compensation nationwide reminds us that the competition for talent remains fierce.”
Key findings include:
- Twenty percent of small business owners reported taxes as their single most important problem.
- In December, both actual and planned prices fell from the previous month.
- A net negative 3% of owners reported paying a higher interest rate on their most recent loan.
- The net percent of owners expecting better business conditions rose 9 points from November to a net 24% (seasonally adjusted), contributing the most to the rise in the Optimism Index. This was the first increase since July.
- When asked to evaluate the overall health of their business, 9% rated it excellent (down 2 points), 54% rated it good (up 1 point), 34% rated it fair (up 4 points), and 3% rated it poor (down 2 points).
- The net percent of owners reporting inventory gains rose 6 points to a net negative 1% (seasonally adjusted), the highest reading of the year.
In December, 64% of small business owners reported that supply chain disruptions were affecting their business to some degree, unchanged from November.
As reported in NFIB’s monthly jobs report, a seasonally adjusted 33% of all small business owners reported job openings they could not fill in December, unchanged from November. Unfilled job openings remain above the historical average of 24%. Of the 53% of owners hiring or trying to hire in December, 91% reported few or no qualified applicants for the positions they were trying to fill. A seasonally adjusted net 17% of owners plan to create new jobs in the next three months, down 2 points from November.
Fifty-six percent of small business owners reported capital outlays in the last six months, up 4 points from November. Historically, this is a weak reading.
The NFIB Research Center has collected Small Business Economic Trends data with quarterly surveys since the fourth quarter of 1973 and monthly surveys since 1986. Survey respondents are randomly drawn from NFIB’s membership. The report is released on the second Tuesday of each month. This survey was conducted in December 2025.
