The National Federation of Independent Business (NFIB) in Nevada commented on the latest Small Business Optimism Index, which showed a 0.5-point increase in August to 100.8. This figure is nearly three points above the index’s 52-year average of 98. According to NFIB, four of the index’s ten components increased, four decreased, and two remained unchanged. The primary factor contributing to the rise was an increase in small business owners expecting higher real sales.
Tray Abney, state director for NFIB in Nevada, said, “Since November last year, our monthly Small Business Optimism Index has been posting numbers above the Index’s 52-year average, after 34 consecutive months of readings below the average—34 consecutive months! More pro-business administrations in Washington D.C. and Carson City, the now permanence of the 20% Small Business Deduction in the U.S. tax code, and our own Legislature’s holding the line on tax increases and regulatory overreach in the last session have been contributing factors to a healthy economic trend. Let’s hope it continues.”
The Small Business Optimism Index is widely used by policymakers including Congress and state legislatures as a key measure of small business sentiment across America. It reflects responses from NFIB members nationwide rather than being broken down by state. Typically, NFIB members employ between one and nine people with annual gross sales around $500,000.
NFIB Chief Economist Bill Dunkelberg noted improvements seen in August: “Optimism increased slightly in August with more owners reporting stronger sales expectations and improved earnings. While owners have cited an improvement in overall business health, labor quality remained the top issue on Main Street.”
Other findings from August include that 14% of respondents rated their business health as excellent (up one point), while 54% rated it as good (up two points). Twenty-seven percent described their business health as fair (down four points), with 4% reporting poor conditions (unchanged). Labor quality continued to be cited as the single most important problem by 21% of respondents.
Job openings also saw some change; 32% (seasonally adjusted) reported having job openings they could not fill during August—a decrease of one point from July. The last time this figure was below 32% was July 2020.
Additionally, fewer businesses raised their average selling prices; those doing so dropped three points since July to a net rate of 21%, marking this year’s lowest level.
For more information about developments affecting small businesses in Nevada or nationally visit https://www.nfib.com/ or follow @NFIB_NV on X.
