The NFIB Small Business Optimism Index remained steady in June, edging down a bit, slightly above the 51-year average. A substantial increase in respondents reporting excess inventories contributed the most to the decline in the index.
NFIB State Director Dan Murray highlighted how small business owners in Kansas are navigating the economy.
“The dip in certainty reflects what we’re hearing from our members across the state. But there’s no doubt that small business owners are relieved by the passage and signature of the Big Beautiful Bill Act,” Murray said. “With the automatic tax hikes scheduled to take place at the end of the year averted and the 20% small business deduction made permanent, Main Street can plan ahead with more confidence and clarity.”
The Uncertainty Index decreased by five points from May, as 19% of small business owners reported taxes as their single most important problem, up one point from May and ranking as the top problem again. The last time taxes reached 19% was in July 2021.
“Small business optimism remained steady in June while uncertainty fell,” said NFIB Chief Economist Bill Dunkelberg. “Taxes remain the top issue on Main Street, but many others are still concerned about labor quality and high labor costs.”