NFIB’s California State Director Warns Against Economic Complacency

The latest Small Business Economic Trends report, also known as the Optimism Index, was released today, showing little change in the Main Street economy. John Kabateck, California state director for the National Federation of Independent Business (NFIB), expressed concern over the slight improvement in small business optimism from March to April, stating that “a blip is no sign of a healthy economic pulse rate.”

Kabateck attributed the lackluster optimism to Congress’s delay in passing the Main Street Tax Certainty Act, which aims to prevent small businesses from facing a significant tax increase when the Small Business Deduction expires in 2025. He also commended the California Legislature for placing Senate Bill 1116 on the suspense file, which would extend unemployment benefits to certain groups, signaling a potential relief for employers facing higher costs.

NFIB Chief Economist Bill Dunkelberg highlighted the ongoing cost pressures faced by small business owners, with many raising compensation to retain and attract employees. Despite these challenges, Dunkelberg noted that small business owners remain historically pessimistic but are dedicated to serving their customers.

The NFIB’s monthly Small Business Economic Trends report is considered the gold standard measurement of America’s small business economy and is used by various government entities to gauge the health of Main Street enterprises. The report highlighted concerns such as inflation, price hikes, job openings, and average selling prices.

For more information on California small-business news, visit www.nfib.com/california or follow NFIB on Twitter @NFIB_CA or on Facebook @NFIB.CA. NFIB has been advocating for small and independent business owners for 80 years, remaining dedicated to supporting the interests of small businesses across the country.