Washington, DC, September 10, 2024 – The NFIB Small Business Optimism Index fell 2.5 points in August to 91.2, erasing all of July’s gains. This is the 32nd consecutive month below the 50-year average of 98. The Uncertainty Index rose to 92, its highest level since October 2020. Inflation remains the top issue among small business owners, with 24% of owners citing it as the top operating issue for small businesses, down one point from July.
“Sentiment on Main Street worsened in August, despite improvements last month,” said Bill Dunkelberg, NFIB chief economist. “Historically high inflation remains the top issue for property owners as sales expectations plummet and cost pressures rise. Uncertainty among small business owners continues to rise as expectations about future business conditions worsen.”
Key findings include:
- The frequency of positive earnings trend reports was a net negative 37% (seasonally adjusted), seven points worse than in July and the lowest since March 2010.
- Twenty-four percent of business owners reported inflation as their most important problem in operating their businesses, down one point from July.
- The net percentage of homeowners expecting higher actual sales volumes fell nine points in August to a net negative 18% (seasonally adjusted). Actual sales volume expectations were the largest contributor to the decline in the optimism index, along with earnings trends and expected business conditions.
- A seasonally adjusted plan to increase net compensation by 20% over the next three months, up two points from July.
- The net percentage of homeowners increasing average sales prices fell two points from July to a seasonally adjusted net 20%.