Gem State Wire

The latest Small Business Optimism Index released by the National Federation of Independent Business (NFIB) shows a mixed outlook for small businesses in Idaho. The index has remained above its 51-year average for the fourth consecutive month, though it is still 4.4 points below its recent peak in December. Meanwhile, the Uncertainty Index has risen to 104, marking the second highest recorded reading.

"There are some policy initiatives, both state and federal, that would help reduce the uncertainty small business owners are feeling toward the economy," stated Suzanne Budge, NFIB's state director in Idaho. She emphasized the importance of advancing Governor Brad Little’s call for further tax relief and resisting costly measures such as changes to minimum wage laws and local option taxes. Federally, Budge urged Congress to make the 20% Small Business Deduction permanent before it expires at year-end.

The Small Business Optimism Index serves as a key measure of America's small business climate and is widely used by policymakers across various levels of government. According to NFIB Chief Economist Bill Dunkelberg, "Uncertainty is high and rising on Main Street." He noted a decline in small business owners' expectations for better conditions over the next six months and a drop in those viewing this period as an opportune time for expansion.

Key findings from the latest index include a ten-point drop in economic optimism among business owners since January and a five-point decrease in those considering it a good time to expand their operations—the largest monthly fall since April 2020. Inflation concerns have slightly decreased but remain significant alongside labor quality issues.

The NFIB has been advocating for small businesses nationwide since its founding over 80 years ago. More information about their work can be found at nfib.com or through their social media presence.