The National Federation of Independent Business (NFIB) reported that its Small Business Optimism Index fell by 2.0 points in September to 98.8, marking the first decline in three months. Despite this decrease, the index remains above its 52-year average of 98. The NFIB Uncertainty Index also increased by seven points from August, reaching 100, which is the fourth-highest level recorded in over five decades.
Tray Abney, state director for NFIB in Nevada, commented on the results: “The fact that the latest Optimism Index did not fall beneath its 52-year average is remarkable when you consider how many post-pandemic years it took to climb above it. I attribute part of the resilience the Optimism Index is showing to Congress and the president making the 20% Small Business Deduction permanent and to Governor Lombardo for holding the line against costly regulations.”
The NFIB Small Business Optimism Index is widely recognized as a key measure of the health of small businesses in the United States. It is referenced by policymakers including those at the Federal Reserve and in Congress, and provides a national snapshot rather than state-specific data. According to NFIB, typical member businesses employ between one and nine people and report annual gross sales around $500,000.
Bill Dunkelberg, chief economist at NFIB, said: “Optimism among small business owners decreased in September. While most owners evaluate their own business as currently healthy, they are having to manage rising inflationary pressures, slower sales expectations, and ongoing labor market challenges. Although uncertainty is high, small business owners remain resilient as they seek to better understand how policy changes will impact their operations.”
The latest report highlighted ongoing challenges with supply chain disruptions and inflation. Fourteen percent of surveyed owners identified inflation as their most significant problem—a three-point increase from August—due to higher input costs. In addition, 64% reported some degree of supply chain disruption in September, up ten points from August.
The percentage of owners raising average selling prices rose by three points to a net 24%, while a net 31% plan price increases over the next three months—up five points from August figures. However, there was an improvement noted in actual earnings changes; more owners reported higher profits compared to lower ones than at any point since December 2021.
More information about NFIB Nevada can be found at www.nfib.com or by following their X account @NFIB_NV.
