Strong support for Initiative 2066 good news for small businesses

FOR IMMEDIATE RELEASE
Contact: Tony Malandra, Senior Media Manager, 415-640-5156, anthony.malandra@nfib.org

OLYMPIA, Wash., Nov. 12, 2024—Today’s release of NFIB’s monthly Small Business Economic Trends report, also known as the Optimism Index, showed minor improvement in some categories but within a backdrop of a record 51-year high in uncertainty.

The strong showing for Initiative Measure 2066 was a bit of good news for small businesses coming out of Olympia, but the 20% Small Business Deduction, which is the top priority for small business owners in Washington D.C., could provide continued relief if made permanent. On November 7, NFIB launched an advertising campaign aimed at reminding the new Congress and Administration that it should be Priority No. 1 for them to make the Small Business Deduction permanent. 

From NFIB Chief Economist Bill Dunkelberg

“With the election over, small business owners will begin to feel less uncertain about future business conditions,” said NFIB Chief Economist Bill Dunkelberg. “Although optimism is on the rise on Main Street, small business owners are still facing unprecedented economic adversity. Low sales, unfilled jobs openings, and ongoing inflationary pressures continue to challenge our Main Streets, but owners remain hopeful as they head toward the holiday season.”

Key Findings from Today’s Report include:

• A net negative 20% of all owners (seasonally adjusted) reported higher nominal sales in the past three months, down three points from September and the lowest reading since July 2020.
  
  
• Seasonally adjusted, a net 31% reported raising compensation, down one point from September. The last time it was this low was April 2021.
  
  
• The net percent of owners expecting higher real sales volumes rose five points to a net negative 4% (seasonally adjusted), the highest reading of this year.
  
  
• A net 5% of owners reported paying a higher rate on their most recent loan, down seven points from September and the lowest reading since January 2022.
  
  
• Thirty-five percent (seasonally adjusted) of all owners reported job openings they could not fill in the current period, up one point from September.
  
  
• Twenty-three percent of owners reported that inflation was their single most important problem in operating their business (higher input and labor costs), unchanged from September and remaining the top issue.
  
  

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 Washington small-business news at www.nfib.com/WA. Follow us on X at @NFIB_WA and on Facebook https://www.facebook.com/NFIB.WA.

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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.

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