The latest NFIB Small Business Optimism Index shows a rise of 2.2 points in October, reaching 93.7. Despite this increase, the index remains below the 50-year average of 98 for the 34th consecutive month. The Uncertainty Index has also climbed to 110, marking its highest recorded level.
NFIB Chief Economist Bill Dunkelberg commented on the situation: "With the election over, small business owners will begin to feel less uncertain about future business conditions." He acknowledged that while optimism is improving on Main Street, challenges such as low sales and inflationary pressures persist.
Matt Everson, NFIB Iowa State Director, expressed hope for local businesses: “Iowa’s small businesses are showing resilience as we approach the holiday season.” He emphasized the need for legislative support to bolster Iowa's small business community.
Key findings from the report include a net negative 20% of owners reporting higher nominal sales over the past three months, a decrease from September and the lowest since July 2020. Compensation increases were reported by a net 31%, down slightly from September levels. Expectations for higher real sales volumes improved by five points to a net negative 4%.
In terms of employment, job openings that could not be filled rose to 35%, indicating ongoing labor market challenges. Additionally, inflation remains a primary concern for 23% of business owners.
Capital outlays have seen some activity with 54% of owners reporting expenditures in recent months. A range of investments includes new equipment and facilities improvements.
On pricing trends, there was a slight decrease in those raising average selling prices to a net 21%. However, price hikes were most frequent in finance, retail, construction, and services sectors.
The survey data is collected monthly by the NFIB Research Center from randomly selected members since it began in quarterly form in 1973 and monthly since 1986.
