Idaho Comment on Latest Small Business Optimism Report

September 10, 2024

Idaho Comment on Latest Small Business Optimism Report

FOR IMMEDIATE RELEASE Contact: Suzanne Budge, Idaho State Director, sbs@sbsidaho.com or Tony Malandra, Senior Media Manager, anthony.malandra@nfib.org BOISE, Idaho, Sept. 10, 2024—Release today of NFIB’s latest Small Business Economic Trends report (also called the Optimism Index) showed – once again – positive outlooks about the economy among Main Street entrepreneurs as difficult to find as qualified employees for open positions. “There are two important things to stress” said Suzanne Budge, state director for NFIB in Idaho. “One is the pro-small-business policies Governor Little and our State Legislature have put in place have helped cushion the blow in this age of continued economic uncertainty. The other is Congress urgently needs to stop dithering and start passing the Main Street Tax Certainty Act that will keep the 20% Small Business Deduction from expiring next year. For many small business owners the deduction has helped them cope with the problems caused by inflation, labor shortages, and – as we see in other NFIB research – supply chain disruptions that seem to be rearing their ugly head again.” From NFIB Chief Economist Bill Dunkelberg “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.” Highlights from Today’s Report

The frequency of reports of positive profit trends was a net negative 37% (seasonally adjusted), seven points worse than in July and the lowest since March 2010.

Twenty-four percent of owners reported inflation as their single most important problem in operating their business, down one point from July.

The net percent of owners expecting higher real sales volumes fell nine points in August to a net negative 18% (seasonally adjusted).

A seasonally adjusted net 20% plan to raise compensation in the next three months, up two points from July.

Note to Reporters Last week (September 4), NFIB released an industry-specific Small Business Optimism report measuring the construction, manufacturing, retail, and services sectors. A noteworthy highlight (Page 12 of the full report): Seventy percent of all small business owners reported being impacted by supply chain disruptions (significant, moderate, or mild). NFIB’s monthly (SBET) report is the gold standard measurement of America’s small business economy. Used by the Federal Reserve, Congressional leaders, administration officials, and state legislatures across the nation, it’s regarded as the bellwether on the health and welfare of the Main Street enterprises that employ half of all workers, generate more net new jobs than large corporations, and gave most of us the first start in our working life. The SBET (aka the Optimism Index) is a national snapshot of NFIB-member, small-business owners not broken down by state. More about the Uncertainty Index can be read here. The typical NFIB member employs between one and nine people and reports gross sales of about $500,000 a year. Keep up with the latest Idaho small-business news at env-nfibcom-uat.kinsta.cloud/idaho, where this news release can also be found, or by following NFIB on Twitter @NFIB_ID. ### For 80 years, NFIB has been advocating on behalf of America’s small and independent business owners, both in Washington, D.C., and in all 50 state capitals. NFIB is a nonprofit, nonpartisan, and member-driven association. Since our founding in 1943, NFIB has been exclusively dedicated to small and independent businesses and remains so today. For more information, please visit nfib.com. NFIB Idaho 802 W. Bannock Ste. 301 Boise, ID 83702 208-345-6632 Web page : NFIB.com/ID Twitter: @NFIB_ID