The National Federation of Independent Business (NFIB) in Nevada commented on Mar. 10 regarding the latest findings from the NFIB Small Business Optimism Index, which showed a decrease of 0.5 points in February to 98.8 but remained slightly above the 52-year average of 98. The Uncertainty Index also dropped three points from January to 88.
The monthly index is closely watched as an indicator of small business sentiment and economic health. Tray Abney, state director for NFIB in Nevada, said that while some components of this month’s index sent mixed signals about the small business economy, it was positive to see the overall index remain above its long-term average. “Some of the components from this month’s Optimism Index sent a mixed message about the small business economy, but it was good to see the overall Index still above its 52-year average. It wasn’t until November 2024 that the Index was able to shake off 34 consecutive months of being below the average, so there’s every reason to remain optimistic as is the fact that we’re headed into a tax-filing season where the 20% Small Business Tax Deduction is now a permanent feature of the tax code. Had small businesses not rallied around the permanency cause, it would have expired at the end of last year,” Abney said.
NFIB Chief Economist Bill Dunkelberg also addressed national trends reflected in February’s report: “Although optimism declined slightly, small businesses report feeling more certain in February as they look toward the coming months. High sales and increased profits made February a more positive month for many owners, but competition from large businesses is putting stress on Main Street firms as they navigate the current economic climate.”
Key highlights from February’s index include a net 34% of owners reporting raised compensation—up two points from January and marking the highest level since March 2025—and an increase in reports of positive profit trends by seven points to a net negative 14%. The percentage of owners raising average selling prices fell by two points to a net 24%, marking three consecutive months of slowing price increases though still above historical averages. When asked about their business health, responses were mixed: twelve percent rated their business as excellent (down two points), fifty-five percent as good (up one point), twenty-six percent as fair (down one point), and five percent as poor (up one point).
In conjunction with these findings, NFIB released a new episode of its “Small Business by the Numbers” podcast through its Research Center.
NFIB has represented America’s small and independent businesses for over eighty years and continues advocacy efforts both nationally and within all fifty states.
