Sunflower State News

The NFIB Small Business Optimism Index for June showed a slight decrease, dropping by 0.2 points to 98.6, which remains above the long-term average of 98. A notable factor in this decline was an increase in reports of excess inventories. The Uncertainty Index also fell by five points to 89.

"Small business optimism remained steady in June while uncertainty fell," said NFIB Chief Economist Bill Dunkelberg. "Taxes remain the top issue on Main Street, but many others are still concerned about labor quality and high labor costs."

Dan Murray, NFIB State Director for Kansas, commented on how local businesses are adapting to economic conditions. "The dip in certainty reflects what we’re hearing from our members across the state. But there’s no doubt that small business owners are relieved by the passage and signature of the Big Beautiful Bill Act," he said.

Key findings include a net negative 5% of owners viewing current inventory stocks as too low, indicating a net increase in inventories. Additionally, expectations for better business conditions dropped three points to a net 22%. Plans for capital outlays decreased slightly to 21%.

Labor quality remains a significant concern at 16%, unchanged from May. Inflation concerns have eased somewhat, with only 11% citing it as their main problem, down three points from May.

In terms of employment, 36% reported unfilled job openings in June, up two points from May. Compensation plans saw an increase with a net 33% reporting raised compensation.

Fifty percent of owners made capital outlays over the past six months, with expenditures mainly on new equipment and vehicles.

Poor sales were reported as the top problem by 10% of owners, marking an increase after five months of stability.

Price increases are planned by a net 32%, reflecting continued pressure on pricing strategies among small businesses.

Profit trends showed some improvement with a net negative reading improving by four points compared to May.

Finally, taxes remain the most cited issue at 19%, followed closely by government regulations and competition from larger businesses.

The survey data is collected monthly and has been since 1986 through NFIB's Research Center surveys conducted among its membership base.