The National Federation of Independent Business Small Business Optimism Index rose 0.5 points in December to 99.5 and remained above its 52-year average of 98, the NFIB said in a Jan. 13 news release.

Of the 10 Optimism Index components, two increased, three decreased, and five were unchanged. 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.

“2025 ended with a further increase in small business optimism,” NFIB Chief Economist Bill Dunkelberg said. “While Main Street business owners remain concerned about taxes, they anticipate favorable economic conditions in 2026 due to waning cost pressures, easing labor challenges and an increase in capital investments.”

“While optimism is improving, Colorado’s small business owners are still contending with an onerous regulatory environment,” said Michael Smith, NFIB Director for Colorado. “Last year, the General Assembly imposed more red tape on small businesses and made them unpaid tax collectors on behalf of the state. … As the legislative session gets underway, Main Street is asking lawmakers to protect the Labor Peace Act and resist policy proposals that make it harder to do business in our state.”

In conjunction with the December report, NFIB also released a new episode of the “Small Business by the Numbers” podcast. This is the NFIB Research Center’s new podcast where co-hosts Holly Wade, the executive director of the NFIB Research Center, and Peter Hansen, director of research and policy analysis, discuss the data, stories and economic conditions affecting small businesses nationwide.

Key findings include:

• Twenty percent of small business owners reported taxes as their single most important problem, up 6 points from November and ranking as the top problem. This is the highest reading since May 2021.
• In December, both actual and planned prices fell from the previous month. The net percent of owners raising average selling prices fell 4 points from November to a net 30 percent (seasonally adjusted). A net 28 percent (seasonally adjusted) plan to increase prices in the next three months (down 2 points).
• A net negative 3 percent of owners reported paying a higher interest rate on their most recent loan, down 5 points from November and the lowest reading since January 2021.
• The net percent of owners expecting better business conditions rose 9 points from November to a net 24 percent (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 percent rated it excellent (down 2 points), 54 percent rated it good (up 1 point), 34 percent rated it fair (up 4 points), and 3 percent rated it poor (down 2 points).
• The net percent of owners reporting inventory gains rose 6 points to a net negative 1 percent (seasonally adjusted), the highest reading of the year.
• In December, 64 percent of small business owners reported that supply-chain disruptions were affecting their business to some degree, unchanged from November. Beneath simple yes/no impact binary, there was a positive shift from those reporting a significant impact to those reporting a moderate or mild impact.