Aloha State News

The National Federation of Independent Business (NFIB) has released its latest Small Business Economic Trends Report, indicating a slight decline in optimism among small business owners across the United States. Despite this drop, the report highlights that optimism levels have remained above the Index's 51-year average for three consecutive months.

Michael Iosua, NFIB's state director for Hawaii, commented on the findings: "It needs emphasizing that the slight drop in optimism still registered a third consecutive month above the Index’s 51-year average, which is all the more remarkable when prior to this three-month stretch, the Index weathered 34 consecutive months of below-average readings." He added that future economic stability relies heavily on effective state and federal policies.

The NFIB’s Optimism Index serves as a key indicator of small business health in America and is used by policymakers including those at the Federal Reserve and in Congress. The typical NFIB member employs between one and nine people with annual gross sales around $500,000.

Bill Dunkelberg, NFIB Chief Economist, noted ongoing challenges: “Overall, small business owners remain optimistic regarding future business conditions, but uncertainty is on the rise. Hiring challenges continue to frustrate Main Street owners as they struggle to find qualified workers to fill their many open positions. Meanwhile, fewer plan capital investments as they prepare for the months ahead.”

Key points from the latest report include:

- A net percent of owners expecting economic improvement dropped five points from December.

- Thirty-five percent reported unfilled job openings.

- Plans for capital outlays decreased by seven points.

- Reports of loan difficulty are at their lowest since June 2022.

- Inventory investment plans have declined six points since December.

For further updates on Hawaii's small-business landscape or to follow NFIB Hawaii's activities, visit www.nfib.com or follow them on X @NFIB_HI.

NFIB continues its advocacy efforts for small businesses nationwide from its headquarters in Washington D.C., maintaining its nonpartisan stance since its inception in 1943.