Small business owners are facing uncertainty regarding economic conditions, as indicated by the latest Small Business Optimism Index from the National Federation of Independent Business (NFIB). The index fell by 2.1 points in February to 100.7, marking a decline from its recent peak of 105.1 in December, although it remains above the 51-year average of 98 for the fourth consecutive month. The Uncertainty Index also increased by four points to reach 104, which is the second-highest recorded level.
Michael Iosua, state director for NFIB in Hawaii, commented on this situation: “From a public policy point of view, a large part of the economic uncertainty small business owners are feeling can be directly attributed to the lack of certainty concerning whether the 20% Small Business Deduction will expire at the end of the year.” He added that certain legislative measures perceived as harmful to small businesses appear unlikely to proceed this year.
The NFIB’s monthly Small Business Optimism Index serves as an important indicator for America’s small business economy and is used by various government entities and officials across the nation. It provides insights into Main Street enterprises that employ half of all workers and generate more net new jobs than larger corporations.
Bill Dunkelberg, NFIB Chief Economist, stated: “Uncertainty is high and rising on Main Street and for many reasons. Those small business owners expecting better business conditions in the next six months dropped and the percent viewing the current period as a good time to expand fell.”
Key findings from this month’s index include:
– A ten-point drop in net percentage of owners expecting economic improvement.
– A five-point decrease in those considering it a good time to expand their businesses.
– Inflation remains a significant issue but has fallen slightly behind labor quality concerns.
– An increase in planned price hikes over the next three months.
For further updates on Hawaii’s small-business news, visit www.nfib.com or follow NFIB Hawaii on X @NFIB_HI.
NFIB has been advocating for small businesses since its founding in 1943 and continues its efforts both nationally and within individual states.
