Centennial 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 increased by 14 points to 100, marking its third-highest recorded level after a period 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 noted ongoing hiring challenges and a decrease in planned capital investments as businesses prepare for the coming months.

NFIB State Director Michael Smith highlighted concerns specific to Colorado, urging state lawmakers to oppose measures that could increase business costs. "While Colorado’s small business owners are hopeful future business conditions will improve, 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 and an unchanged figure of 35% reporting unfilled job openings. Eighteen percent identified inflation as their primary operational challenge, matching labor quality concerns.

A net negative 14% reported higher nominal sales over the past three months, while inventory gains fell by six points to a net negative 6%. Additionally, price hikes were most prevalent in finance, retail, wholesale, and professional services sectors.

The survey revealed that three percent of owners found their borrowing needs unmet, with a slight increase in those reporting difficulty obtaining loans compared to previous attempts.

Data for this report was collected through surveys conducted by the NFIB Research Center since 1973 and released monthly since 1986. The latest survey took place in January 2025.