Oregon Comment on Latest Small Business Optimism Index

Oregon Comment on Latest Small Business Optimism Index
State’s Main Street entrepreneurs got a dose of good news on July 4
By NFIB,

SALEM, Ore., July 8, 2025—From NFIB Oregon State Director Anthony Smith on today’s release of the monthly Small Business Optimism Index from the National Federation of Independent Business (NFIB), showing it remaining steady in June, edging down 0.2 of a point to 98.6, slightly above the 51-year average of 98.

“After what just happened in the Oregon Legislature, small businesses were hungry for some good news and got it in a very big way on July 4 when the 20% Small Business Deduction was made a permanent feature of the federal tax code, averting a massive automatic tax increase that would have kicked in at the end of the year had Congress failed to act. For those on the precipice of making consequential business decisions, like whether or not to hire a new employee or invest in new equipment, they can now make a better-informed decision knowing this business-solvency tool will be around for good.”

NFIB’s monthly Small Business Optimism Index is the gold standard measurement of America’s small business economy. Used by the Federal Reserve, Congressional leaders, administration officials, and state legislatures across the nation, it’s regarded as the bellwether on the health and welfare of the Main Street enterprises that employ half of all workers, generate more net new jobs than large corporations, and gave most of us the first start in our working life. The Optimism Index (aka Small Business Economic Trends report) is a national snapshot of NFIB-member, small-business owners not broken down by state. The typical NFIB member employs between one and nine people and reports gross sales of about $500,000 a year.

From NFIB Chief Economist Bill Dunkelberg

“Small business optimism remained steady in June while uncertainty fell. Taxes remain the top issue on Main Street, but many others are still concerned about labor quality and high labor costs.”

Highlights from the Latest NFIB Small Business Optimism Index

• The net percent of owners expecting better business conditions fell three points from May to a net 22% (seasonally adjusted). Historically, this is still a positive reading with the 51-year average at a net 3%.
• The net percent of owners expecting higher real sales volumes fell three points from May to a net 7% (seasonally adjusted).
• The percent of small business owners reporting labor quality as the single most important problem for business remained at 16%, unchanged from May. The last time complaints about labor quality fell below 16% was in April 2020. Fewer small business owners reporting labor as their top problem aligns with other data suggesting a more tempered labor market economy-wide.
• Eleven percent of owners reported that inflation was their single most important problem in operating their business (higher input costs), down three points from May and the lowest reading since September 2021. Inflation pressures continue to ease on Main Street.

Keep up with the latest Oregon small business news at www.nfib.com or on X at @NFIB_OR

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