NFIB small business optimism rises in Colorado as inflation remains top concern

DENVER — The NFIB Small Business Optimism Index increased 2.1 points to 97.4 in June, approaching its 52-year average of 98.0 as expectations for business conditions and sales improved.

The NFIB’s Uncertainty Index declined 2 points to 89 but remained above its historical average of 68.

“Current economic conditions present small business owners with both encouraging developments and ongoing challenges,” NFIB Chief Economist Bill Dunkelberg said. “Lower fuel costs provide welcome relief for businesses as well as consumers, with firms anticipating improved operating conditions over the next six months.”

According to the report, 32% of small business owners reported job openings they could not fill in June, up 3 percentage points from May. A net 11% plan to create new jobs over the next three months, up 2 points from the previous month.

Inflation remained the top concern for business owners, with 21% identifying it as their single most important problem, up 3 points from May and the highest level since October 2024.

“Lower fuel prices have certainly provided relief to Main Street Coloradans and their consumers,” NFIB Colorado State Director Michael Smith said. “Despite the rise in optimism, Colorado’s small business owners continue to face rising costs, few qualified applicants, and a difficult regulatory environment.”

Other findings from the June survey include:

• A net 13% of owners expect business conditions to improve over the next six months, up 10 points and the first improvement this year.
• A net 9% expect higher real sales over the next quarter, up 8 points.
• Twenty percent plan capital investments within the next six months, up 4 points and the highest level of the year.
• A net 38% raised average selling prices, up 2 points and the highest reading since January 2023.
• A net 32% plan to raise prices over the next three months, down 2 points from May.
• The average interest rate on short-term loans fell to 7.4%, down 0.4 percentage points from May and the lowest level since October 2022.
• Twenty-two percent of owners reported borrowing regularly, down 5 points from May and below the historical average of 34%.