Grand Canyon Times

State legislators in Arizona have been urged to address the economic uncertainty faced by small business owners. This call comes after the National Federation of Independent Business (NFIB) released its latest Small Business Optimism Index, which revealed a decline of 2.1 points in February, bringing the index to 100.7.

Despite remaining above the 51-year average of 98 for four consecutive months, the index is still 4.4 points below its recent peak of 105.1 in December. Additionally, the Uncertainty Index increased by four points to reach 104, marking it as the second-highest recorded reading.

"Inflation and costs continue to plague small business operators in Arizona," stated Chad Heinrich, NFIB's state director for Arizona. "We continue to look toward our state legislators in the current session to do everything they can to reduce costs for small business owners."

The NFIB’s monthly Small Business Optimism Index serves as a key measure of America's small business economy and is used by entities such as the Federal Reserve and Congressional leaders. It provides a national snapshot without breaking down data by state and reflects sentiments from NFIB-member small-business owners who typically employ between one and nine people with gross sales around $500,000 annually.

Bill Dunkelberg, NFIB Chief Economist, commented on the findings: "Uncertainty is high and rising on Main Street and for many reasons. Those small business owners expecting better business conditions in the next six months dropped and the percent viewing the current period as a good time to expand fell but remains well above where it was in the fall. Inflation remains a major problem, ranked second behind labor quality."

Key highlights from this month's report include:

- A ten-point drop from January among owners expecting economic improvement.

- A decrease by five points from January among those considering it a good time for expansion.

- Sixteen percent of owners identified inflation as their most pressing issue.

- A net increase of three points plans price hikes over the next three months.

The NFIB has been advocating for small businesses since its founding in 1943 and continues its efforts both nationally and at state levels.