Big Sky Times

The latest Small Business Optimism Index, released by the National Federation of Independent Business (NFIB), has shown a continued positive trend, marking the fourth consecutive month above its 51-year average of 98. However, it remains 4.4 points below its recent peak of 105.1 in December. The Uncertainty Index associated with this report has risen four points to 104, the second-highest level recorded.

Ronda Wiggers, state director for NFIB in Montana, emphasized the need for policy goals from both Congress and the Montana Legislature to focus on reducing economic uncertainty for small business owners. "I’m glad to report our lawmakers in Helena have been doing their part by passing property tax relief and stopping costly proposals that would only stymie job creation," she stated. She also urged Congress to make the 20% Small Business Deduction permanent.

The NFIB's Small Business Optimism Index is widely regarded as a key indicator of America's small business economy. It is used by various entities including the Federal Reserve and Congressional leaders as a measure of Main Street enterprises' health and welfare. Typically, NFIB members employ between one and nine people and report gross sales around $500,000 annually.

Bill Dunkelberg, NFIB Chief Economist, noted that "uncertainty is high and rising on Main Street" due to several factors. He highlighted a drop in expectations for better business conditions over the next six months and a decrease in those viewing it as a good time to expand their businesses. Inflation continues to be a significant issue but ranks just below labor quality concerns.

Key findings from the latest index include:

- A ten-point drop from January in net owners expecting economic improvement.

- A five-point decline in those considering it a good time for business expansion.

- Sixteen percent cited inflation as their main operational challenge.

- A net 29% plan price hikes within three months, marking an increase over previous readings.

For ongoing updates on Montana's small business news, visit www.nfib.com or follow @NFIB_MT on X.

The NFIB has been advocating for small businesses across America since its founding in 1943. As a nonprofit organization dedicated solely to small businesses, it operates both nationally and at state levels without partisan bias.