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Alaska Comment on Latest Small Business Optimism Index

Alaska Comment on Latest Small Business Optimism Index

July 8, 2025

Good news on permanency of the Small Business Deduction a nice counterbalance to Measure 1

FOR IMMEDIATE RELEASE
Contact: Thor Stacey, Alaska State Director, thor@thorstaceyassociates.com
Tony Malandra, Senior Media Manager, anthony.malandra@nfib.org

JUNEAU, Alaska, July 8, 2025—From NFIB Alaska State Director Thor Stacey on today’s release of the monthly Small Business Optimism Index from the National Federation of Independent Business (NFIB), showing it remaining steady in June, edging down 0.2 of a point to 98.6, slightly above the 51-year average of 98.

“Making the Small Business Deduction permanent on the Fourth of July lifted a huge worry off the minds of Main Street entrepreneurs everywhere, and I want to thank Alaska’s congressional delegation for its help in not letting this crucial business-solvency tool expire at the end of this year. It’s just too bad Alaska’s small-business owners can’t completely enjoy the moment, because now they have to turn back to the worries of complying with Measure 1, which just took effect the beginning of the month.”

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

“Small business optimism remained steady in June while uncertainty fell. Taxes remain the top issue on Main Street, but many others are still concerned about labor quality and high labor costs.”

Highlights from the Latest NFIB Small Business Optimism Index

  • The net percent of owners expecting better business conditions fell three points from May to a net 22% (seasonally adjusted). Historically, this is still a positive reading with the 51-year average at a net 3%.
  • The net percent of owners expecting higher real sales volumes fell three points from May to a net 7% (seasonally adjusted).
  • The percent of small business owners reporting labor quality as the single most important problem for business remained at 16%, unchanged from May. The last time complaints about labor quality fell below 16% was in April 2020. Fewer small business owners reporting labor as their top problem aligns with other data suggesting a more tempered labor market economy-wide.
  • Eleven percent of owners reported that inflation was their single most important problem in operating their business (higher input costs), down three points from May and the lowest reading since September 2021. Inflation pressures continue to ease on Main Street.

 

Keep up with the latest Alaska small-business news at www.nfib.com. Follow us on X at @NFIB_AK.

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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 Alaska
Box 211231
907-723-1494
Juneau, AK 99821
www.nfib.com
X: @NFIB.AK

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