Golden State Today

The National Federation of Independent Business (NFIB) released its latest Small Business Optimism Index, which saw a decrease of 2.1 points in February to 100.7. Despite this decline, the index remains above its 51-year average for the fourth consecutive month. However, there is concern over the Uncertainty Index, which increased by four points to 104, marking it as the second-highest recorded level.

John Kabateck, NFIB's California state director, commented on potential legislative impacts: "It would really help alleviate a lot of small business anxiety if Congress would prevent the 20% Small Business Deduction from expiring at the end of the year," he stated. Kabateck also urged California legislators to reconsider proposals that could increase costs or legal challenges for small businesses.

Bill Dunkelberg, NFIB Chief Economist, highlighted rising uncertainty among small business owners: "Uncertainty is high and rising on Main Street and for many reasons." He noted a decline in optimism regarding future business conditions and expansion plans while pointing out that inflation remains a significant issue.

Key findings from the latest index include a ten-point drop in economic improvement expectations and a five-point decrease in those considering it a good time to expand their businesses. Inflation was identified as a primary concern by 16% of owners but has now fallen below labor quality as the top issue.

NFIB continues its advocacy for small businesses across America and provides resources through its website and social media platforms.