NFIB’s Small Business Optimism Index rose 1.3 points to 91.9 in December, coming in above market expectations for a modest increase. Despite the increase, the index was still 6 points below its historical average of 98 points. Five of the ten subcomponents improved on the month, three deteriorated, and two remained unchanged. Leading the gains were earning trends (up 7 points to -25%), along with expectations about an improvement in the economy (up 6 points to -36%) and higher real sales (up 4 points to -4%). On the other hand, current inventory took a notable step back, falling 5 points to -5%. The share of businesses planning to increase employment fell 2 points to a still-decent 16%, while the share of firms with unfilled job openings held steady for the second consecutive month at 40%. Of note, quality of labor concerns fell 4 points, with 20% of business owners identifying this as their top business problem.