The National Federation of Independent Business (NFIB) released its monthly Small Business Optimism Index, showing a 1.7-point increase in July to 100.3, which is slightly above the index’s 52-year average of 98. The rise was mainly due to more business owners reporting improved conditions and viewing it as a good time to expand.
Patrick Connor, NFIB Washington State Director, commented on the results: “After the meat grinder the Washington Legislature just put small businesses through, I was happy to see the improvement in optimism among Main Street entrepreneurs nationally. I don’t want to read too much into one month’s findings (next month’s Index will tell us if we’ve gained some traction) but for now, it’s looking as if the month-after-month of bad small business economic news following the pandemic could be letting up.”
The NFIB Small Business Optimism Index is widely used by policymakers and is considered an important measure of small business health across the United States. It provides a national perspective based on responses from NFIB-member small-business owners, most of whom employ between one and nine people and report about $500,000 in annual gross sales.
Bill Dunkelberg, NFIB Chief Economist, said: “Optimism rose slightly in July with owners reporting more positive expectations on business conditions and expansion opportunities. While uncertainty is still high, the next six months will hopefully offer business owners more clarity, especially as owners see the results of Congress making the 20% Small Business Deduction permanent and the final shape of trade policy. Meanwhile, labor quality has become the top issue on Main Street again.”
According to July’s survey highlights:
– Thirteen percent of respondents rated their business health as excellent (up five points), while 52% said it was good (up three points). Thirty-one percent reported fair (down four points), and 4% reported poor (down three points).
– Eleven percent identified poor sales as their top problem—the highest level since February 2021.
– The net percentage expecting better conditions rose by 14 points from June to a net 36%, above historical averages.
– Sixteen percent said it was a good time to expand their business, up five points from June.
NFIB continues its advocacy for small businesses at both state and national levels. More information can be found at www.nfib.com or through its social media channels.
