The National Federation of Independent Business (NFIB) released its latest Small Business Economic Trends report, also known as the Optimism Index, revealing a decline in sentiment among small business owners. Bill Dunkelberg, NFIB’s chief economist, commented on the findings: “The mood on Main Street worsened in August, despite last month’s gains.” He highlighted that “historically high inflation remains the top issue for owners as sales expectations plummet and cost pressures increase.” Dunkelberg noted that uncertainty is rising among small business owners as they foresee worsening future business conditions.
Key points from the report include a net negative 37% in positive profit trends reports, marking a seven-point drop from July and reaching its lowest since March 2010. Inflation was identified by 24% of owners as their primary challenge, slightly down from July. Expectations for higher real sales volumes fell nine points to a net negative 18%. Additionally, there is an increase in plans to raise compensation with a seasonally adjusted net 20% intending to do so within three months.
A recent industry-specific Small Business Optimism report highlighted that 70% of small business owners have been affected by supply chain disruptions. The NFIB’s monthly report serves as a key indicator of America’s small business economy and is utilized by various government bodies to assess economic health.
For over eight decades, NFIB has advocated for small and independent businesses across the United States. More information can be found at nfib.com.
