The National Federation of Independent Business (NFIB) released its monthly Small Business Optimism Index, showing a 1.7-point increase in July to 100.3. This figure is slightly above the index’s 52-year average of 98. The improvement was largely attributed to more respondents reporting better business conditions and indicating that it is a good time to expand.
Tray Abney, NFIB Nevada State Director, commented on the report: “As we expected, making the 20% Small Business Deduction a permanent part of the tax code, instead of letting it expire at the end of the year, has had a calming effect on the small business economy. Job creators crave stability. That should help fortify Nevada’s Main Street entrepreneurs against the current headwinds we are facing in our softening tourism numbers.”
The NFIB Small Business Optimism Index is widely used by policymakers including the Federal Reserve and Congressional leaders as an indicator of small business health nationwide. The index provides a national snapshot based on responses from NFIB-member small-business owners, who typically employ between one and nine people with gross sales around $500,000 annually.
NFIB Chief Economist Bill Dunkelberg said: “Optimism rose slightly in July with owners reporting more positive expectations on business conditions and expansion opportunities. While uncertainty is still high, the next six months will hopefully offer business owners more clarity, especially as owners see the results of Congress making the 20% Small Business Deduction permanent and the final shape of trade policy. Meanwhile, labor quality has become the top issue on Main Street again.”
Key findings from July’s index include:
– Thirteen percent rated their overall business health as excellent (up five points), while 52% reported good (up three points). Thirty-one percent described their business health as fair (down four points), and 4% reported poor (down three points).
– The percentage citing poor sales as their main problem rose by one point to 11%, marking its highest level since February 2021.
– The net percentage expecting better business conditions increased by 14 points from June to a net 36%, which is above historical averages.
– Sixteen percent said it is a good time to expand their businesses, up five points from June.
NFIB continues its advocacy for small businesses both nationally and within Nevada.
