Beehive State News

The latest Small Business Economic Trends report from NFIB indicates that economic challenges continue to impact small businesses across most of the country, while Utah remains relatively insulated. Utah's approach, characterized by low taxes and regulations, is highlighted as a model for others in supporting small businesses.

"Utah is in many ways the best state in the nation to start a small business," stated Casey Hill, NFIB's state director for Utah, during an interview on KSL NewsRadio 102.7 FM. Hill expressed concern, however, that the state's advantage may be eroded if the Main Street Tax Certainty Act is not passed by Congress. This legislation is intended to prevent the expiration of the 20% Small Business Deduction next year.

NFIB Chief Economist Bill Dunkelberg provided an overview of the August economic climate. "The mood on Main Street worsened in August, despite last month’s gains. 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's findings include a net negative 37% of reports on positive profit trends, marking a decline of seven points from July. This is noted as the lowest level since March 2010. Additionally, 24% of owners reported inflation as their primary concern, a slight decrease from July, while the net percentage of owners expecting higher real sales volumes dropped nine points to a net negative 18%.

In terms of compensation, 20% of owners plan to raise pay in the next three months, up by two points from the previous month.

The NFIB also released an industry-specific Small Business Optimism report last week, highlighting that 70% of small business owners are affected by supply chain disruptions.

The SBET report is a key indicator of the condition of America's small business economy and is utilized by Federal Reserve, congressional, and state leaders to assess the health of Main Street enterprises.

For further information about NFIB's impact and advocacy, details can be found on nfib.com.