https://www.datawrapper.de/_/3cCSM/?v=3

The NFIB Small Business Optimism Index jumped 3.4 pts to 105.1 in December, the highest since October 2018 and well above expectations of an increase to 105.1. The main index surging is the Outlook for General Business Conditions which has increased 57 pts since the election to 52. That surge comes despite small businesses reporting declines in sales and earnings with those indexes both unchanged at -26 and -13 respectively. However, the Sales Expectations index has seen a rise to the headline index jump, up 26 pts to 22, the highest post-pandemic reading so far.

https://www.datawrapper.de/_/AnkBm/?v=6

Both small business price indexes remained unchanged in December. Actual Price Changes ended the year at 24, just -1 pt off a year ago and the highest reading since June, and Price Plans sits at 28, down -4 pts from a year ago and the highest since May. With 20% of respondents listing inflation as the single most important problem, price pressures remain the top issue for small businesses.

https://www.datawrapper.de/_/E9FcS/?v=4

The improvement in the small business outlook does seem to indicate that firms will look to increase hiring. The Hiring Plans index increased to 19, the highest since May 2023 and higher than the December readings in both 2022 and 2023. Actual hiring did not improve, however, with that index easing -2 pts to -3. Qualified labor supply is still a headwind for small business operations.

https://www.datawrapper.de/_/Ihko0/

Small business wage pressures continued to gradually decline. The Actual Compensation Changes Index fell -3 pts to 29, the lowest since March 2021, and the Compensation Plans Index fell -4 pts to 24, reversing most of the increase it saw in November. The data suggests that qualified labor shortages are a problem for small firms that are keeping labor costs elevated.