FOR IMMEDIATE RELEASE
Contact: Patrick Connor, Washington State Director, patrick.connor@nfib.org,
or Tony Malandra, Senior Media Manager, anthony.malandra@nfib.org

OLYMPIA, Wash., March 11, 2025—The Washington Legislature needs to stop contributing to the increasing economic uncertainty small business owners are having about the direction of the economy, said the state director for the National Federation of Independent Business (NFIB) in response to his association’s release today of its latest Small Business Optimism Index, which showed the Index falling by 2.1 points in February to 100.7.

Although this was the fourth consecutive month above the Index’s 51-year average of 98, it’s also 4.4 points below its most recent peak of 105.1 in December. Most troubling, the Uncertainty Index rose four points to 104 – the second highest recorded reading.

“Congress has the biggest part to play in alleviating small business uncertainty over the economy by not letting the 20% Small Business Deduction expire at the end of the year,” said Patrick Connor, state director for NFIB in Washington. “But our State Legislature also fans the flames of uncertainty by making sure the lawyer class is always provided for in legislation and by the horrendous idea to open up the unemployment insurance trust fund to those who choose to leave jobs they already have to go out on strike.”

NFIB’s monthly Small Business Optimism Index 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 Optimism Index (aka Small Business Economic Trends report) is a national snapshot of NFIB-member, small-business owners not broken down by state. The typical NFIB member employs between one and nine people and reports gross sales of about $500,000 a year.

From NFIB Chief Economist Bill Dunkelberg

“Uncertainty is high and rising on Main Street and for many reasons. Those small business owners expecting better business conditions in the next six months dropped and the percent viewing the current period as a good time to expand fell, but remains well above where it was in the fall. Inflation remains a major problem, ranked second behind the top problem, labor quality.”

Highlights from the Latest Optimism Index

• The net percent of owners expecting the economy to improve fell ten points from January to a net 37% (seasonally adjusted).
• Twelve percent (seasonally adjusted) of owners reported that it is a good time to expand their business, down five points from January. This is the largest monthly decrease since April 2020.
• Sixteen percent of owners reported that inflation was their single most important problem in operating their business, down two points from January and now just below labor quality as the top issue. The last time it was this low was in October 2021.
• Seasonally adjusted, a net 29% plan price hikes in the next three months, up three points from January and the highest reading in 11 months.

Keep up with the latest Washington state small-business news at www.nfib.com or on X @NFIB_WA or on Facebook @NFIB.WA

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For more than 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 Washington
111 – 21st Avenue Southwest
Olympia, WA 98501
360-786-8675
NFIB.com/WA
Twitter: @NFIB_WA
Facebook: @NFIB.WA