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The
Small Business Optimism Index fell half a point last month to
90.8, according to the National Federation of Independent
Business (NFIB). The index in September also remained below its
49-year average of 98 points for the 21st-straight month.
September's report was similar in tone to the one for August,
which saw the first dip in optimism since April with businesses
noting a tight labor market and inflation as top concerns.
“Owners remain pessimistic about future business conditions,
which has contributed to the low optimism they have regarding
the economy,” said Bill Dunkelberg, the NFIB’s chief economist.
“Sales growth among small businesses has slowed and the bottom
line is being squeezed, leaving owners few options beyond
raising selling prices for financial relief.”
Amid the Federal Reserve's most aggressive rate hike campaign in
decades, small businesses are facing higher borrowing costs for
credit. Widespread economic uncertainty has also grown
surrounding projections of future recession, weighing on the
outlook for businesses.
The share of owners expecting better business conditions over
the next six months fell six points to a net negative 43%. The
portion of owners saying inflation was their main concern
remained unchanged at a seasonally adjusted 23%, tied with the
share citing labor difficulties.
Businesses in the construction, retail, manufacturing, and
service industries most frequently reported labor shortages as a
pressing concern. Ninety-three percent of businesses actively in
the market to hire claimed to find no or few workers qualified
for their positions.
(Reporting by Amina Niasse; Editing by Andrea Ricci)
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