By Joseph S. Pete
The Times, Munster, Ind.
(TNS)
Small business owners remained optimistic last month, despite a host of concerns about issues such as high inventories, taxes, inflation and labor costs.
The National Federation of Independent Businesses Small Business Optimism Index stayed steady in June, dipping 0.2 of a point to 98.6 but remaining above the 51-year average of 98. The small businesses surveyed most frequently expressed concern about excess inventories and taxes.
“Indiana’s small businesses continue to create jobs and be a critical asset to the state and local economies,” National Federation of Independent Businesses Indiana State Director Natalie Robinson said. “Taxes have consistently been a top concern for small employers, but we are pleased to see action taken at the federal level to make the 20% Small Business Deduction permanent and provide more certainty to Indiana’s small business owners.”
Small businesses are a pillar of the state’s economy. The U.S. Small Business Administration estimates Indiana is home to more than 534,000 small businesses that employ more than 1.2 million Hoosiers.
Small businesses reported an increase in inventories in June, according to the NFIB. About 12% described inventories as too high last month, up from 7% in May.
The number of business owners expecting better business conditions dropped 3% to a net 22%, while the net percentage expecting high retail sales dropped 3% compared to May to a net 7% in June, according to the NFIB.
About 21% of businesses plan capital outlays over the next six months. That’s down one percentage point from May.
About 16% identified labor quality as the most important problem, while 11% identified inflation as the most important problem. Both declined, which the NFIB interpreted as a sign that the labor market is stabilizing and inflation pressures are lessening.
About 10% of business owners said labor costs was the most important problem, according to the NFIB survey. About 33% raised pay in June, which was up seven percentage points from May and the largest month-over-month increase since January 2020.
About 8% of business owners ranked the health of their business as excellent, 49% good, 35% fair and 7% poor. The number of businesses reporting excellent health was down six percentage points, while the number reporting poor health was up three points.
Photo credit: Rawpixel/iStock
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© 2025 The Times (Munster, Ind.). Visit www.nwitimes.com. Distributed by Tribune Content Agency LLC.
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