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The
National Federation of Independent Business (NFIB) said its
small business optimism index fell to 90.6 last month from 90.7
in October. The index remained below its 50-year average of 98
for a 23rd straight month.
Optimism has fallen since peaking this year in July as
businesses report difficulties finding labor and battling
inflation. A net negative 32% of businesses reported higher
profits in November, unchanged from October.
While difficulties filling open positions persist, the
percentage of businesses describing few or no qualified job
applicants fell to 50%, the lowest since January 2021. The fall
brings it below the average of about 52 in the two years before
the coronavirus pandemic.
Fewer owners also reported difficulty filling open positions,
with the figure falling three points from October to 40%, though
the current pace of hiring remains weak.
"The net percent of NFIB firms increasing employment has been
negative since March, with more firms decreasing jobs than
adding them," the report said. "Openings remain elevated, but
the surge in the economy did not bring a strong wave of workers
to fill open positions."
As the Federal Reserve nears the close of its interest rate
hiking cycle, 25% of owners surveyed paid a higher rate on their
most recent loan, down three points from October. The outlook on
business conditions has also been impacted by widespread
economic uncertainty, according to the report.
The portion of owners expecting better business conditions on a
six-month basis rose one point to a net negative 42% in
November.
(Reporting by Amina Niasse; Editing by Paul Simao)
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