The NFIB Small Business Optimism Index remained steady in June, showing a slight decline of 0.2 points to 98.6, which is still above the 51-year average of 98. The decrease was primarily due to an increase in respondents reporting excess inventories. The Uncertainty Index dropped by five points from May to 89.
Taxes continue to be a significant concern for small business owners, with nineteen percent citing it as their most pressing issue. This marks an increase of one point from May and is the highest since July 2021.
Mike O’Halloran, NFIB Delaware State Director, stated, “While optimism remains steady among small businesses, owners report that taxes continue to be their top business problem. Delaware’s small business owners are relieved Congress made the Small Business Deduction permanent and provided them with federal tax relief.”
Other key findings from the survey include:
– A net negative five percent of owners viewed current inventory stocks as “too low,” indicating a net increase in inventories.
– Expectations for better business conditions fell three points to a net 22%, which remains positive historically.
– Owners expecting higher real sales volumes also decreased by three points to a net seven percent.
– Capital outlays plans saw a slight decline, with twenty-one percent planning investments in the next six months.
– Labor quality issues remained unchanged at sixteen percent.
– Inflation concerns eased slightly with eleven percent identifying it as their primary issue.
The overall health of businesses showed signs of deterioration. Only eight percent reported excellent health (a drop of six points), while those reporting good health fell six points to forty-nine percent.
Job openings that could not be filled increased slightly, affecting thirty-six percent of small business owners. Despite this, hiring intentions rose marginally.
Labor costs were identified as the main issue for ten percent of businesses, and compensation increases were noted by thirty-three percent—a notable rise from previous months.
Investment activities saw fifty-percent participation over the past six months but at reduced levels compared to prior readings.
In terms of sales performance, ten percent cited poor sales as their top problem—a slight increase—while inventory gains experienced a minor decline.
Price increases were on the horizon for thirty-two percent of owners, marking an upward trend since March last year.
Profit trends improved slightly despite challenges such as weaker sales and rising material costs impacting profitability negatively for some.
Interest rates and financing presented fewer issues than before but remain areas monitored closely by businesses planning expansion or borrowing regularly.
Finally, government regulations continued to be a consistent challenge alongside competition from larger enterprises affecting seven percent more businesses than previously recorded.
This data was collected through NFIB’s monthly surveys conducted since 1986 among its membership base and released on July 9th, reflecting insights gathered during June 2025.
