Beaver State News

The latest Small Business Economic Trends report, released by the National Federation of Independent Business (NFIB), indicates a continued lack of optimism among small business owners. The report, also known as the Optimism Index, marks its 32nd consecutive month below the index's 50-year average.

"The mood on Main Street worsened in August, despite last month’s gains," said Bill Dunkelberg, chief economist for NFIB. He highlighted that "historically high inflation remains the top issue for owners as sales expectations plummet and cost pressures increase." Dunkelberg also noted rising uncertainty among small business owners regarding future business conditions.

Key findings from the report include a net negative 37% frequency of positive profit trends, marking a decline from July and reaching the lowest point since March 2010. Inflation was reported as the single most important problem by 24% of owners, slightly down from July. Additionally, there was a nine-point drop in the net percentage of owners expecting higher real sales volumes in August.

A noteworthy detail is that 70% of small business owners have been affected by supply chain disruptions to varying degrees, according to an industry-specific Small Business Optimism report released earlier this month.

The NFIB's monthly SBET report serves as a key measure of America's small business economy and is used by various government entities to gauge economic health. The typical NFIB member employs between one and nine people with gross sales around $500,000 annually.

For further information about NFIB and its advocacy efforts on behalf of small businesses since its founding in 1943, visit nfib.com.