Sooner State News

The NFIB Small Business Optimism Index experienced a decline of 2.3 points in January, settling at 102.8. Despite this drop, the index remained above its 51-year average for the third consecutive month. The Uncertainty Index saw an increase of 14 points to reach 100, marking the third highest reading recorded after two months of decline.

"Overall, small business owners remain optimistic regarding future business conditions, but uncertainty is on the rise," stated NFIB Chief Economist Bill Dunkelberg. He highlighted ongoing hiring challenges as a significant concern for Main Street businesses struggling to find qualified workers. Additionally, there has been a decrease in plans for capital investments as businesses brace for upcoming months.

Jerrod Shouse, NFIB State Director, urged state lawmakers to prioritize support for small businesses in Oklahoma amid rising costs and hiring difficulties. "Oklahoma’s 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 included a five-point drop in the net percentage of owners expecting economic improvement since December, bringing it to a net 47% when seasonally adjusted. Inflation was reported by 18% of owners as their most pressing issue, matching labor quality concerns and marking its lowest level since November 2021.

In terms of pricing strategies, there was a slight reduction with the net percentage of owners raising average selling prices falling two points to a net 22%. Job openings remained unchanged from December with 35% reporting unfilled positions. Capital outlay plans decreased by seven points from December with only 20% planning such expenditures over the next six months.

Other notable statistics include reports that financing needs were largely met with only three percent citing unsatisfied borrowing requirements. However, some reported increased difficulty in obtaining loans compared to previous attempts.

The data collection by NFIB's Research Center began in quarterly surveys starting from late 1973 and transitioned to monthly surveys since 1986. This latest survey was conducted throughout January 2025 and released on February's second Tuesday.