Evergreen Reporter

The latest NFIB Small Business Economic Trends report, also known as the Optimism Index, reveals a continued decline in small business optimism. This marks the 32nd consecutive month that the index has remained below its 50-year average.

Patrick Connor, state director for NFIB in Washington, commented on the situation: “There remains a great deal of uncertainty along the Main Streets of America.” He pointed to concerns over whether the 20% Small Business Deduction on federal taxes will persist beyond 2025. "Without it, millions of Main Street entrepreneurs are facing tax increases. Congress needs to act now by passing the Main Street Tax Certainty Act," he added.

NFIB Chief Economist Bill Dunkelberg noted that "the mood on Main Street worsened in August" despite some gains from the previous month. He identified historically high inflation as a significant issue affecting owners, with sales expectations dropping and cost pressures rising. Dunkelberg stated, "Uncertainty among small business owners continues to rise as expectations for future business conditions worsen."

Key findings from the report include a net negative 37% frequency of positive profit trends reports, which is seven points worse than July and marks the lowest level since March 2010. Additionally, 24% of owners cited inflation as their most pressing problem—a slight decrease from July.

The percentage of owners expecting higher real sales volumes fell by nine points in August to a net negative 18%. Conversely, a seasonally adjusted net 20% plan to raise compensation in the next three months—an increase of two points from July.

A separate industry-specific Small Business Optimism report released last week highlighted that supply chain disruptions have affected 70% of small business owners across various sectors including construction, manufacturing, retail, and services.

The NFIB's monthly SBET report is widely regarded as an essential measure of America's small business economy. It serves as a key resource for policymakers such as the Federal Reserve and Congressional leaders.

For further details about NFIB's advocacy efforts and updates on small-business news in Washington State, visit nfib.com/WA or follow them on social media platforms like X and Facebook.