Sunflower State News

The NFIB Small Business Optimism Index experienced a decline of 2.3 points in January, reaching 102.8. Despite this drop, the index remains above the long-term average for the third consecutive month. The Uncertainty Index saw an increase of 14 points to 100, marking its third-highest level on record.

"Overall, small business owners remain optimistic regarding future business conditions, but uncertainty is on the rise," stated NFIB Chief Economist Bill Dunkelberg. He noted that hiring challenges persist as businesses struggle to find qualified workers and are less inclined to plan capital investments.

NFIB State Director Dan Murray highlighted concerns specific to Kansas, urging lawmakers to focus on supporting small businesses amid rising costs and hiring difficulties. "Kansas’ small business owners are hopeful future business conditions will improve but rising costs and hiring challenges are fueling uncertainty," he said.

Key findings from the survey include a five-point drop in the net percentage of owners expecting economic improvement, with inflation and labor quality tied as top issues at 18%. A net 22% reported raising average selling prices, while job openings remained unfilled for 35% of respondents.

The survey also revealed a decrease in planned capital outlays over the next six months and noted that fewer owners viewed current inventory stocks as too low compared to previous months. Reports of positive profit trends were slightly less negative than December's figures.

Credit access appears stable, with only a slight increase in those reporting unmet borrowing needs or difficulty obtaining loans compared to prior periods.

The NFIB Research Center has been collecting data on small business economic trends since 1973 through quarterly surveys and monthly updates since 1986. This latest survey was conducted in January 2025.