Cornhusker State News

The NFIB Small Business Optimism Index experienced a decline of 2.1 points in February, settling at 100.7. Despite this drop, the index has remained above the 51-year average of 98 for four consecutive months but is still 4.4 points below its recent peak in December.

NFIB Chief Economist Bill Dunkelberg noted the rise in uncertainty on Main Street, stating, "Uncertainty is high and rising on Main Street and for many reasons." He highlighted that fewer small business owners expect better business conditions in the next six months and that inflation continues to be a significant issue, second only to labor quality.

Ryan McIntosh, NFIB Nebraska State Director, emphasized the resilience shown by small businesses with capital investments made by 58% of them over the past six months. However, he pointed out challenges such as workforce shortages and mandates like Nebraska's paid leave requirement. "Nebraska’s paid leave mandate only exacerbates these challenges," McIntosh said.

The report detailed several key findings:

- The net percentage of owners expecting economic improvement fell by ten points to a net 37%.

- Twelve percent reported it as a good time to expand their business.

- Inflation was cited as the single most important problem by sixteen percent of owners.

- A net 32% of owners raised average selling prices.

- Labor costs were reported as a major concern by twelve percent of business owners.

In terms of employment trends, thirty-eight percent of small business owners reported unfilled job openings in February. Among those hiring or attempting to hire, eighty-nine percent faced difficulties finding qualified applicants.

The survey also introduced a new question about overall business health evaluation: eleven percent rated their business health as excellent, fifty-five percent as good, twenty-seven percent as okay, and six percent as bad.

Other financial indicators showed varied results: twenty-four percent reported borrowing regularly while a net two percent found loans harder to obtain compared to previous attempts. Additionally, seasonally adjusted data indicated planned price hikes by twenty-nine percent of businesses in the next three months.

Overall sales trends saw mixed outcomes with nominal sales reporting down two points from January while real sales expectations dropped six points from January levels.

This data comes from NFIB's monthly survey conducted among its members in February 2025. The organization has been collecting Small Business Economic Trends data since 1973 through quarterly surveys and since 1986 via monthly surveys.