Joel Libava
The NFIB Small Business Optimism Index hit its peak for 2024 in June, reaching 91.5, a slight increase from the previous month. This marks the 30th consecutive month below the historical average of 98.
That said, small business owners continue to remain apprehensive about the economy for the remainder of the year.
NFIB Small Business Optimism Index Report: June, 2024
Here are a few of the key findings from the June NFIB report:
- Seasonally adjusted, 22% of small business owners plan to increase compensation in the next three months, a rise of four percentage points from May.
- A net negative 2% of owners reported that their current inventory levels were insufficient in June, an increase of six points from May’s record low since October 1981.
- A net negative 2% of owners plan to invest in inventory in the upcoming months, a rise of four points from May.
- Fifty-two percent of owners reported making capital expenditures in the last six months, a decrease of six points from May and the lowest reading since August 2022.
- Four percent of owners reported that all their borrowing needs were not met, an increase of one point from May and the highest reading since August 2022.
On Small Business Jobs
According to the monthly jobs report from the NFIB, 37% of all small business owners reported unfilled job openings in the current period, down five points from May. Of those hiring or trying to hire, 85% reported few or no qualified applicants for the positions they were looking to fill.
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As to sales, pricing, compensation, profit and inventory levels and expenditures, I encourage you to read the rest of the report.
Note: the NFIB Research Center has collected Small Business Economic Trends data with quarterly surveys since the fourth quarter of 1973 and monthly surveys since 1986.
Survey respondents are randomly drawn from NFIB’s membership. The report is released on the second Tuesday of each month.
To summarize, the report shows that things look a touch better, but small business owners still aren’t completely confident about things.
And with the Presidential election only months away, I don’t see small business owners making a lot of higher-risk moves until it’s over.
About the Author
Joel Libava is The Franchise King® — an independent franchise advisor with 25+ years in the industry, two published books on franchising, and his writing has been featured in The New York Times, Forbes, CNBC, Entrepreneur® Magazine and others. In addition, he wrote exclusively for the U.S. Small Business Administration blog for eight years. He doesn't sell franchises. Instead, Joel helps you figure out if franchise ownership is actually right for you — and if it is, teaches you his powerful, proven-to-work franchise research techniques, so you can make a smart, informed decision on a franchise to own and be your own boss.
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