Main Street Malaise Still Gripping Most of the Nation

September 10, 2024

Main Street Malaise Still Gripping Most of the Nation

FOR IMMEDIATE RELEASE Contact: Tony Malandra, Senior Media Manager, anthony.malandra@nfib.org SALT LAKE CITY, Utah, Sept. 10, 2024—Absent the economic fortifications Utah has in place for its Main Street enterprises, the rest of the nation continued its drag on small business optimism, according to the latest NFIB Small Business Economic Trends report, released today. “Utah is in many ways the best state in the nation to start a small business,” said Casey Hill, state director for NFIB in Utah in a recent interview on KSL NewsRadio 102.7 FM. “We should be very proud of that. Our legislators, by and large, do a fantastic job supporting small business with low taxes, low regulations and all that is significant.” But, Hill warned, this advantage could be greatly diminished if Congress fails to pass the Main Street Tax Certainty Act, which will keep the 20% Small Business Deduction from expiring next year. 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 Utah small-business news at www.nfib.com/utah. Follow us on X at @NFIB_UT. ### 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 Utah Salt Lake City, UT 317-638-4447 www.nfib.com/utah