Beaver State News

Another pessimistic result emerged with the release of NFIB's latest Small Business Economic Trends report, also known as the Optimism Index. The reading marked the 32nd consecutive month of performance below the Index's five-decade average.

"The mood on Main Street worsened in August, despite last month’s gains," expressed Bill Dunkelberg, chief economist for the National Federation of Independent Business (NFIB). "Historically high inflation remains the top issue for owners as sales expectations plummet, and cost pressures increase. Uncertainty among small business owners continues to rise as expectations for future business conditions worsen."

The report revealed that the frequency of positive profit trends was at a net negative 37%, which is a seven-point decrease from July and the lowest since March 2010. Moreover, 24% of owners identified inflation as their primary problem, reflecting a one-point decrease from July. The net percent of owners who anticipate higher real sales volumes fell by nine points in August to a net negative 18%. Conversely, a seasonally adjusted net 20% plan to raise compensation in the next three months, a two-point increase from July.

In an industry-specific report released last week, NFIB highlighted that 70% of small business owners were affected by supply chain disruptions. This report covered the construction, manufacturing, retail, and services sectors.

The NFIB's Small Business Economic Trends report serves as a key indicator of America's small business economy. Used by the Federal Reserve and government officials nationwide, it provides a glimpse into the state of Main Street enterprises, which employ half of all workers and generate more new jobs than large corporations. The report includes feedback from NFIB members, who typically employ between one and nine people and report annual gross sales of about $500,000.

Additional updates on Oregon's small-business news can be found at www.nfib.com/OR, and NFIB's activities can be followed on their social media handle @NFIB_OR.

For 80 years, the NFIB has advocated for small and independent business owners across the United States. The organization remains committed to supporting this sector and operates as a nonprofit, nonpartisan, and member-driven association.