Small businesses are facing ongoing challenges in the current economic climate, according to the latest Small Business Economic Trends report released by the National Federation of Independent Business (NFIB). The report indicates that the Optimism Index has remained below its 50-year average for 32 consecutive months.
Tray Abney, Nevada State Director for NFIB, emphasized the need for legislative action. “Yes, there are things states can do to ameliorate tax and regulatory headaches troubling small businesses,” he stated. “But right now, more than anything, Congress needs to do one big thing to keep our small business economy from lapsing deeper into the doldrums, and that is pass the Main Street Tax Certainty Act, which will keep the 20% Small Business Deduction from expiring next year. It’s imperative.”
Bill Dunkelberg, NFIB Chief Economist, commented on the prevailing sentiment among small business owners. “The mood on Main Street worsened in August, despite last month’s gains. Historically high inflation remains the top issue for owners as sales expectations plummet and cost pressures increase. Uncertainty among small business owners continues to rise as expectations for future business conditions worsen.”
Key findings from the report include a net negative 37% frequency of positive profit trends reports—seven points worse than July and marking the lowest since March 2010. Additionally, 24% of owners cited inflation as their most significant problem in operating their business. The net percentage of owners expecting higher real sales volumes dropped nine points in August to a net negative 18%. A seasonally adjusted net 20% plan to raise compensation over the next three months.
Last week, NFIB released an industry-specific Small Business Optimism report focusing on sectors such as construction, manufacturing, retail, and services. Notably, 70% of all small business owners reported being affected by supply chain disruptions.
The NFIB’s monthly SBET report is widely regarded as a key indicator of America’s small business economy’s health and welfare. It is utilized by entities like the Federal Reserve and Congressional leaders.
For further updates on Nevada’s small-business news or more information about NFIB’s advocacy efforts over its 80-year history supporting independent businesses across America, visit nfib.com/nevada or follow @NFIB_NV on X.
