Gem State Wire

The National Federation of Independent Business (NFIB) has unveiled its latest Small Business Economic Trends report, also known as the Optimism Index. The report reveals a challenging economic environment for small businesses, particularly around labor shortages and finding qualified employees.

Suzanne Budge, Idaho's NFIB state director, highlighted two critical factors amid the ongoing economic uncertainty. "There are two important things to stress," Budge stated. "One is the pro-small-business policies Governor Little and our State Legislature have put in place have helped cushion the blow in this age of continued economic uncertainty. The other is Congress urgently needs to stop dithering and start passing the Main Street Tax Certainty Act that will keep the 20% Small Business Deduction from expiring next year. For many small business owners the deduction has helped them cope with the problems caused by inflation, labor shortages, and — as we see in other NFIB research — supply chain disruptions that seem to be rearing their ugly head again."

Bill Dunkelberg, NFIB's Chief Economist, noted that "the mood on Main Street worsened in August, despite last month’s gains." He emphasized that "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 points from the latest report include a net negative 37% frequency of reports on positive profit trends, marking the lowest level since March 2010, and a decrease in owners reporting inflation as their most significant operating problem. Moreover, the expectation for higher real sales volumes fell significantly, while the intention to raise compensation has slightly increased.

The report also referenced an industry-specific Small Business Optimism report released earlier this month, which noted that 70% of small business owners are impacted by supply chain disruptions to varying degrees.

The NFIB's Small Business Economic Trends report is widely regarded as an important measure of the health of America's small business sector, influencing policy decisions at multiple levels, including the Federal Reserve and Congress. NFIB, a longstanding advocate for small businesses, underscores the significant economic role these enterprises play.

Further details can be accessed on the NFIB website or through their Twitter account.