Silver State Times

The latest Small Business Optimism Index, released by the National Federation of Independent Business (NFIB), indicates a decline in confidence among small business owners. The index dropped by 2.1 points in February to 100.7, although it remains above the long-term average of 98. This marks a significant decrease from its recent high of 105.1 in December.

Tray Abney, Nevada State Director for NFIB, expressed concern about the economic uncertainty facing small businesses and urged the Nevada Legislature not to exacerbate these challenges with additional burdens such as enhanced paid leave mandates or policies that could lead to increased lawsuits.

"The election results did not end the uncertainty small business job creators are experiencing," said Abney. He noted ongoing concerns over inflation and the challenge of finding quality employees.

The NFIB's monthly Small Business Optimism Index is widely recognized as an important measure of the health of America's small business economy. It serves as a reference for policymakers including those at the Federal Reserve and state legislatures across the nation.

Bill Dunkelberg, NFIB Chief Economist, highlighted that "uncertainty is high and rising on Main Street." He pointed out a drop in optimism regarding future business conditions and expansion plans among small business owners while noting that inflation continues to be a significant issue alongside labor quality.

Key findings from the latest report show that expectations for economic improvement fell sharply by ten points since January, with only twelve percent considering it a good time to expand their businesses—a five-point drop from January and the largest decline since April 2020.

While sixteen percent identified inflation as their primary concern, this figure has decreased slightly compared to previous months but remains just behind labor quality as the most pressing issue. Additionally, plans for price hikes have increased, with twenty-nine percent intending to raise prices within three months—the highest level in nearly a year.

For more information on Nevada's small-business climate and updates from NFIB, visit their website or follow them on social media platforms.