Big Sky Times

The National Federation of Independent Business (NFIB) has released its latest Small Business Optimism Index, revealing a slight decline in the positive outlook among small business owners across America. Despite this dip, the index remains above its 51-year average for the third consecutive month.

Ronda Wiggers, NFIB's state director in Montana, remarked on the significance of this sustained optimism. "I think a third consecutive month of positive small business optimism quite remarkable, considering that prior to it, our Index showed it below its 51-year average for 34 months straight," she stated. She emphasized that both state and federal policymakers should aim to maintain this momentum.

Wiggers highlighted the importance of making the 20% Small Business Deduction permanent within the tax code as a critical measure Congress could undertake. In Montana, legislative efforts focused on reducing unemployment insurance premiums, passing tort reform measures, and addressing property taxes are seen as vital steps in sustaining economic growth.

NFIB's Small Business Optimism Index is considered a key indicator of America's small business economy. It is widely used by entities such as the Federal Reserve and Congressional leaders to gauge the health of Main Street enterprises. These businesses employ half of all workers and generate more new jobs than larger corporations.

Bill Dunkelberg, NFIB Chief Economist, noted that while small business owners remain optimistic about future conditions, there is growing uncertainty. "Hiring challenges continue to frustrate Main Street owners as they struggle to find qualified workers to fill their many open positions," he said. Additionally, fewer businesses plan capital investments as they prepare for upcoming months.

Key findings from the latest index include a five-point drop in the net percentage of owners expecting economic improvement since December and an unchanged 35% reporting unfilled job openings. The percentage planning capital outlays fell seven points from December. A net 3% reported increased difficulty in obtaining loans compared to previous attempts.

For further information on NFIB’s activities and updates on Montana's small business sector, visit www.nfib.com or follow them on X at @NFIB_MT.

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