U.S. Small-Business Optimism Hits Three-Month Low in September
The National Federation of Independent Business reports a decline in small-business optimism due to inflation, high borrowing costs, and labor shortages.
Small-business optimism in the United States fell to a three-month low in September, according to the National Federation of Independent Business. The NFIB index dropped 0.8 point to 97.9, reflecting a dimming economic outlook driven by elevated borrowing costs and price pressures linked to conflicts in the Middle East and the Russia-Ukraine war.
Inflation has emerged as a critical hurdle, with 20% of businesses identifying it as their single biggest problem, a rate nearly three times the historical average. In response, a net 31% of firms intend to raise prices over the next three months, while capital spending plans have retreated to their lowest level in three months.
Labor challenges also persist, as 26% of firms cited the quality or availability of workers as their most significant obstacle. Bill Dunkelberg, the chief economist for the NFIB, noted that small-business owners are proceeding with caution as they evaluate the combined impact of rising costs, interest rates, and hiring difficulties.
