The National Federation of Independent Business (NFIB) released its monthly Small Business Optimism Index for September, showing a decrease of 2.0 points to 98.8. This marks the first decline in three months, but the index remains above its 52-year average of 98. The Uncertainty Index increased by 7 points from August, reaching 100, which is the fourth-highest level in over five decades.
Michael Iosua, state director for NFIB in Hawaii, commented on the results: “The silver lining in the latest Optimism Index is that it didn’t slip below its 52-year average, which is important when you consider the years it took for the index to climb back up. We hope to continue this trend but need to ensure no new regulations or compliance costs are added during the Hawaii legislative session next year.”
The Small Business Optimism Index is widely recognized as an important measure of small business health and outlook in the United States. It is used by policymakers including the Federal Reserve and members of Congress as a key indicator of economic trends affecting Main Street businesses.
NFIB Chief Economist Bill Dunkelberg stated: “Optimism among small business owners decreased in September. While most owners evaluate their own business as currently healthy, they are having to manage rising inflationary pressures, slower sales expectations, and ongoing labor market challenges. Although uncertainty is high, small business owners remain resilient as they seek to better understand how policy changes will impact their operations.”
According to highlights from the latest report:
– Fourteen percent of small business owners identified inflation as their most significant operational problem, an increase from August.
– Sixty-four percent reported supply chain disruptions affecting their operations in September, up from August.
– More owners raised average selling prices compared to August; a net 24% reported price increases and a net 31% plan further increases over the next three months.
– The net percentage reporting higher earnings improved by three points in September, reaching its highest point since December 2021.
NFIB has represented small and independent businesses across America for more than eight decades and continues advocacy efforts at both federal and state levels.
For additional information on Hawaii’s small business environment or updates from NFIB Hawaii, visit www.nfib.com or follow @NFIB_HI on X.
