Main Street Economy Defying Any Sign of Positive Traction

September 10, 2024

Main Street Economy Defying Any Sign of Positive Traction

FOR IMMEDIATE RELEASE Contact: Tony Malandra, Senior Media Manager, 415-640-5156, anthony.malandra@nfib.org JUNEAU, Alaska, Sept. 10, 2024—Another month, another dismal reading. That’s what release today of NFIB’s latest Small Business Economic Trends report (aka the Optimism Index) showed. “The mood on Main Street worsened in August, despite last month’s gains,” said Bill Dunkelberg, chief economist for the National Federation of Independent Business (NFIB), which produces the Trends report. “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 Alaska small-business news at www.nfib.com/alaska. Follow us on X at @NFIB_AK. ### 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 Alaska Box 211231 907-723-1494 Juneau, AK 99821 NFIB.com/AK X: @NFIB_AK