Monthly NFIB index showed a 32nd consecutive month below its 50-year average
FOR IMMEDIATE RELEASE
Contact: Patrick Connor, Washington State Director, [email protected]
or Tony Malandra, Senior Media Manager, [email protected]
OLYMPIA, Wash., Sept. 10, 2024—Release today of the latest NFIB Small Business Economic Trends report (also called the Optimism Index) showed Main Street, mom-and-pop enterprises with little to be optimistic about. In fact, it was the 32nd consecutive month the Index has fallen below its 50-year average.
“There remains a great deal of uncertainty along the Main Streets of America,” said Patrick Connor, state director for NFIB in Washington. “I attribute a sizable portion of that uncertainty to small business owners not knowing if the 20% Small Business Deduction on their federal taxes will be kept alive after 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.”
From NFIB Chief Economist Bill Dunkelberg
“The mood on Main Street worsened in August, despite last month’s gains. 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.”
Highlights from Today’s Report
- The frequency of reports of positive profit trends was a net negative 37% (seasonally adjusted), seven points worse than in July and the lowest since March 2010.
- Twenty-four percent of owners reported inflation as their single most important problem in operating their business, down one point from July.
- The net percent of owners expecting higher real sales volumes fell nine points in August to a net negative 18% (seasonally adjusted).
- A seasonally adjusted net 20% plan to raise compensation in the next three months, up two points from July.
Note to Reporters
Last week (September 4), NFIB released an industry-specific Small Business Optimism report measuring the construction, manufacturing, retail, and services sectors. A noteworthy highlight (Page 12 of the full report): Seventy percent of all small business owners reported being impacted by supply chain disruptions (significant, moderate, or mild).
NFIB’s monthly (SBET) report is the gold standard measurement of America’s small business economy. Used by the Federal Reserve, Congressional leaders, administration officials, and state legislatures across the nation, it’s regarded as the bellwether on the health and welfare of the Main Street enterprises that employ half of all workers, generate more net new jobs than large corporations, and gave most of us the first start in our working life. The SBET (aka the Optimism Index) is a national snapshot of NFIB-member, small-business owners not broken down by state. More about the Uncertainty Index can be read here. The typical NFIB member employs between one and nine people and reports gross sales of about $500,000 a year.
Keep up with the latest Washington small-business news at www.nfib.com/WA. Follow us on X at @NFIB_WA and on Facebook https://www.facebook.com/NFIB.WA.
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For 80 years, NFIB has been advocating on behalf of America’s small and independent business owners, both in Washington, D.C., and in all 50 state capitals. NFIB is a nonprofit, nonpartisan, and member-driven association. Since our founding in 1943, NFIB has been exclusively dedicated to small and independent businesses and remains so today. For more information, please visit nfib.com.
NFIB Washington
111 – 21st Avenue Southwest
Olympia, WA 98501
360-786-8675
NFIB.com/WA
Twitter: @NFIB_WA
