Cornhusker State News

The NFIB Small Business Optimism Index remained mostly unchanged in June, slightly decreasing by 0.2 points to 98.6, which is above the long-term average of 98. A notable rise in business owners reporting excess inventories was a key factor in this minor decline. Meanwhile, the Uncertainty Index saw a reduction of five points from May to 89.

Nineteen percent of small business owners cited taxes as their primary concern, marking a one-point increase from May and matching the level last seen in July 2021. Bill Dunkelberg, NFIB Chief Economist, commented, “Small business optimism remained steady in June while uncertainty fell. Taxes remain the top issue on Main Street, but many others are still concerned about labor quality and high labor costs.”

Ryan McIntosh, NFIB Nebraska State Director, noted that despite resilience among Nebraska's small business owners, "the slight decline in optimism signals a need for renewed focus on job creation and lower taxes." He also highlighted the significance of Congress making the 20% Small Business Tax Deduction permanent and urged local lawmakers to prioritize supportive policies.

In June, there was a net negative view of current inventory stocks being too low at -5%, down six points from May. This indicates an increase in inventories with more owners seeing stocks as too high compared to May. The expectation for better business conditions fell three points to a net 22%, though this remains positive historically.

Additionally, there was a decrease in plans for capital outlays and reports of labor quality issues stayed at 16%. Inflation concerns eased with only 11% citing it as their main problem. However, reports on the overall health of businesses showed deterioration with fewer describing their business as excellent or good.

Employment challenges persisted with 36% reporting unfilled job openings in June and compensation increases reported by a net 33%, marking the largest monthly rise since January 2020.

Other notable findings included decreased sales volume expectations and fewer capital expenditures over recent months. Despite these challenges, some businesses plan price increases moving forward.

The NFIB Research Center has been collecting data on small business economic trends since the late '70s through regular surveys.