Obama re-election put small-business owners in a major funk, NFIB says

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NFIB's Small Business Optimism Index fell 5.6 points in November to its lowest level in nearly three years.

Kent Hoover

Washington Bureau Chief

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It's no secret that most National Federation of Independent Business members are Republicans, so it's no surprise they weren't thrilled about President Barack Obama's re-election.

But NFIB's latest monthly survey shows that its members are downright depressed. NFIB's Small Business Optimism Index plummeted 5.6 points in November to 87.5, the index's lowest reading since March 2010. That's when Obama signed health care reform into law, despite NFIB's opposition.

A net 35 percent of NFIB members expect the economy will get worse over the next six months. A month earlier, a net 2 percent thought the economy would get better -- not very optimistic, but at least they didn't think the sky was falling.

What changed? Well, Hurricane Sandy disrupted businesses on the East Coast, but it was Obama's re-election that drove many NFIB members over the edge.

"Nearly half of owners are now certain that things will be worse next year than they are now," said NFIB Chief Economist Bill Dunkelberg. "Washington does not have the needs of small business in mind. Between the looming fiscal cliff, the promise of higher health care costs, and the endless onslaught of new regulations, owners have found themselves in a state of pessimism."

"Hopefully the president takes note and chooses to address small business concerns, rather than pursue an agenda that has noticeably made entrepreneurs more pessimistic," said Rep. Sam Graves, R-Mo., who chairs the House Small Business Committee. "As fiscal cliff negotiations continue, I hope the president ends his campaign to raise small business taxes and instead focuses on tax reform and creating a more business-friendly regulatory environment."