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The
National Federation of Independent Business (NFIB) said its
Small Business Optimism Index fell 0.8 point to 91.3 last month
to the lowest level since July. The retreat came after two
straight months of gains, which followed a deterioration over
the first half of this year.
Thirty-three percent of owners reported that inflation was the
single most important issue in operating their business, up
three points from September and four points below July's
reading, which was the highest share since the fourth quarter of
1979.
The U.S. Federal Reserve has raised interest rates from
near-zero at the beginning of this year to a current range of
3.75% to 4.00% as it battles price pressures that have been
running around 40-year highs for months.
Inflation has also been a flashpoint among voters ahead of
Tuesday's midterm elections, which Democrats fear could see them
lose control of one or both chambers of Congress to their
Republican opponents.
Last week Fed Chair Jerome Powell signaled the central bank
hopes to slow the pace of rate hikes as early as its next policy
meeting on Dec. 13-14, but that it now expects rate increases to
go on for longer with rates ultimately ending higher than
previously thought. Inflation remains, by the Fed's preferred
measure, more than three times its 2% target.
With inflation still high and the full effect of the Fed's
tightening of credit yet to fully reverberate through the
economy, the share of owners expecting better business
conditions over the next six months dropped 2 points last month
from September to a negative 46%. The NFIB's Uncertainty Index
remained unchanged in October from the prior month.
The survey also showed 46% of owners reported job openings that
were hard to fill last month, also unchanged from September.
Government data released last week showed a higher-than-expected
10.7 million job openings on the last day of September,
suggesting demand for labor remained strong.
(Reporting by Lindsay Dunsmuir, Editing by Andrea Ricci)
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