The NFIB Small Business Optimism Index rose for a second consecutive month, reaching 99.5 in December 2025, its highest level since August and in line with market expectations. The index remains above its 52-year average of 98, supported primarily by a rise in owners expecting better business conditions, which jumped 9 points to a net 24%. Reports of positive profit trends also improved slightly, rising 3 points from November to a net negative 20%. When evaluating the overall health of their businesses, 9% of owners 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). However, plans for hiring, capital outlays, and expectations for higher real sales all declined. Taxes were cited as the most important problem by 20% of small business owners, up 6 points from November and the highest reading since May 2021. Meanwhile, the Uncertainty Index fell 7 points to 84, marking its lowest level since June 2024.
