SACRAMENTO, Calif., July 8, 2025—The National Federation of Independent Business (NFIB) has released its monthly Small Business Optimism Index for June, which shows a slight decrease of 0.2 points to 98.6. This figure remains marginally above the 51-year average of 98.
John Kabateck, NFIB California State Director, commented on the index and recent developments beneficial to small businesses in California. “We probably won’t see this again until the 2061 expected return of Halley’s Comet,” he remarked, referring to two significant events: the permanent extension of the Small Business Tax Deduction and legislative measures easing restrictions on home building under CEQA being signed into law. Kabateck praised lawmakers for their efforts, stating that “the future prosperity of California depended on it.”
The NFIB’s Small Business Optimism Index is a widely recognized measure used by policymakers at various levels to assess the health of small businesses in America. The index reflects data from NFIB-member small-business owners nationwide, with typical members employing between one and nine people and reporting gross sales around $500,000 annually.
Bill Dunkelberg, NFIB Chief Economist, noted that “small business optimism remained steady in June while uncertainty fell.” He highlighted that taxes continue to be a major concern for small businesses alongside labor quality and costs.
Key findings from the latest index include a three-point drop in owners expecting better business conditions and higher real sales volumes compared to May. Additionally, labor quality remains a significant issue for 16% of small business owners. Inflation concerns have decreased slightly with only 11% citing it as their primary problem.
For more information on small-business news in California or to follow updates from NFIB, visit their website or social media platforms.
