Michael Iosua Director | NFIB Hawaii
Michael Iosua Director | NFIB Hawaii
The National Federation of Independent Business (NFIB) released its latest Small Business Economic Trends report, revealing continued challenges for the Main Street economy. The Optimism Index has fallen for the 32nd consecutive month below the 50-year average, underscoring persistent difficulties.
NFIB Chief Economist Bill Dunkelberg stated, “The mood on Main Street worsened in August, despite last month’s gains.” He added that high inflation remains the primary concern as sales expectations drop and cost pressures rise. Dunkelberg noted a growing uncertainty among small business owners about future business conditions.
The report highlights several trends for August. A net negative 37% of businesses reported positive profit trends—marking the lowest point since March 2010. Meanwhile, 24% of owners cited inflation as their primary operational challenge, a minor decrease from July. Additionally, the expectation for higher real sales volumes dropped by nine points to a net negative 18%.
Compensation plans increased modestly, with a seasonally adjusted net 20% of owners planning to raise compensation in the coming months, up from July figures.
An accompanying report focusing on industry-specific optimism was released on September 4. It showed that 70% of small business owners have been affected by supply chain disruptions.
NFIB’s Small Business Economic Trends report, also known as the Optimism Index, is a key indicator of the small business economy in the U.S. and is widely used by policymakers and leaders to assess economic health. The report is based on the experience of small-business owners who are members of NFIB and employ one to nine people.
For those interested in more local updates, NFIB Hawaii provides information via their website and social media channels.
"NFIB, a nonprofit and nonpartisan association, has been advocating for small and independent businesses since 1943," the release notes. NFIB continues to represent these businesses at both the federal and state levels.
For more details, NFIB encourages visits to their website or direct inquiries through their contact information provided.
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