The new survey from the National Federation of Independent Business came after the COVID-19 pandemic and President Joe Biden’s first term in office. Small businesses were left reeling and seeking federal assistance in the form of loans to get by. Now, with Trump’s incoming second administration, business owners have changed their outlook.

This December saw an optimum index of 105.1, which was the second consecutive month above the average index of 98 in over 50 years.

Over 50% of business owners reported that they expected the economy to improve. Another fifth said now was a good time to expand business, which was the largest response since February 2020. Another fifth said inflation was the No. 1 problem they encountered while operating their businesses.

Compensation increases seemingly slowed, as only 29% reported doing so in December, which was a steady decrease from the months before. These were the fewest respondents since March 2021.

“Small business owners feel more certain and hopeful about the economic agenda of the new administration. Expectations for economic growth, lower inflation, and positive business conditions have increased in anticipation of pro-business policies and legislation in the new year,” NFIB Chief Economist Bill Dunkelberg said in a statement.

The Biden administration allotted $183 billion in contracts between small businesses and the federal government during fiscal 2024, which some 34 million small businesses benefitted from. This was over $4.5 billion more than the last fiscal year and over $29 billion more than in 2021.