The National Federation of Independent Business (NFIB) reported a slight increase in its Small Business Optimism Index for August, rising by 0.5 points to 100.8. This level is nearly three points above the index’s 52-year average of 98, and marks several consecutive months where optimism has stayed above this historical average.
According to NFIB Utah State Director Casey Hill, “A pattern is starting to emerge, and it’s a very good one for the most important component of our nation’s economy: small business. It wasn’t too long ago that our Small Business Optimism Index came in below its 52-year average for 34 consecutive months. That started to change last November and since then it has come in above the average consistently. I believe a more pro-business administration, Congress’ making the Small Business Deduction permanent, and our Legislature’s pro-Main Street policies are combining to give our economy some forward traction.”
The NFIB Small Business Optimism Index compiles responses from small-business owners nationwide but does not provide state-specific breakdowns. The survey reflects views from businesses with typically between one and nine employees and about $500,000 in annual gross sales.
NFIB Chief Economist Bill Dunkelberg stated, “Optimism increased slightly in August with more owners reporting stronger sales expectations and improved earnings. While owners have cited an improvement in overall business health, labor quality remained the top issue on Main Street.”
Key findings from the latest report include an uptick in business health ratings among small-business owners: 14% rated their business as excellent (up one point), while 54% said good (up two points). The percentage rating their business as fair dropped four points to 27%, while those reporting poor remained unchanged at 4%.
Labor quality continues as a primary concern; 21% of respondents identified it as their main problem. Additionally, job openings that could not be filled fell slightly: In August, 32% of all owners reported unfilled positions—a decrease from July—and this figure has not dipped below that mark since July 2020.
The share of businesses raising average selling prices also decreased by three points compared to July, reaching a net reading of 21%, which is the lowest so far this year.
For more information about ongoing trends or updates regarding small businesses in Utah, readers can visit www.nfib.com or follow @nfib_ut on X.
