Small Business Economy in its 20th Consecutive Month of Mire

September 12, 2023

Small Business Economy in its 20th Consecutive Month of Mire

FOR IMMEDIATE RELEASE Contact: Tony Gagliardi, Colorado State Director, tony.gagliardi@nfib.org, or Tony Malandra, Senior Media Manager, anthony.malandra@nfib.org DENVER, Sept. 12, 2023—Release today of the nation’s bellwether measurement of America’s Main Street economy showed small business owners expecting better business conditions over the next six months deteriorating by seven points. As it does on the second Tuesday of every month, the National Federation of Independent Business (NFIB), the nation’s leading small-business association, releases the results from its latest Small Business Economic Trends report (aka the Optimism Index), 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. NOTE TO EDITORS, TV, Radio Hosts: Holly Wade, who produces the Optimism Index and who is executive director of the NFIB Research Center, will be in Denver next week should you like to meet her for commentary on the health and welfare of the nation’s small businesses or for background information for future stories. The Small Business Economic Trends report is celebrating its 50th anniversary next month. Click here for a one-page history of the SBET (Optimism Index). Contact NFIB Senior Media Manager Tony Malandra if you’d like to meet Holly, 415-640-5156, anthony.malandra@nfib.org. Local Comment on Today’s SBET “A lack of employees and continued inflation pressures are preventing many Main Street businesses from expanding,” said Tony Gagliardi, Colorado state director for NFIB. “When businesses can’t expand, the Main Street economy stalls. The most important thing Congress could do right now is make the 20% Small Business Deduction permanent (Line 13 on Form 1040). The 2017 law that created it made corporate tax reductions permanent but let the Small Business Deduction expire at the end of 2025. This would go a long way to improving the dismal outlook small business owners have right now about the future. Closer to home, the uncertainty surrounding the fate of Proposition HH is not helping matters. Our small business owning membership has spoken out against it. More people should declare their position.” Highlights from today’s SBET (Optimism Index) report

NFIB’s Small Business Optimism Index decreased in August to 91.3, the 20th consecutive month below the 49-year average of 98.

Small business owners expecting better business conditions over the next six months deteriorated seven points from July to a net negative 37%, however, 24 percentage points better than last June’s reading of a net negative 61% but still at recession levels.

Forty percent of owners reported job openings that were hard to fill, down two points from July but remain historically high.

The net percent of owners who expect real sales to be higher decreased two points from July to a net negative 14%.

From NFIB Chief Economist Bill Dunkelberg “With small business owners’ views about future sales growth and business conditions discouraging, owners want to hire and make money now from strong consumer spending. Inflation and the worker shortage continue to be the biggest obstacles for Main Street.” Keep up with the latest Colorado small-business news at www.nfib.com/colorado or by following NFIB on Twitter @NFIB_CO or on Facebook @NFIB.CO ### 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 its 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 Colorado 1700 Lincoln Street, 17th Floor Denver, CO 80203 303-860-1778 www.nfib.com/colorado Twitter: @NFIB_CO Facebook: NFIB.CO