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The
National Federation of Independent Business optimism index edged
up 0.3 points in September to 91.5. But the uncertainty index
rose 11 points to 103, the highest ever recorded.
While inflation is cooling and the pace of hiring appears solid
enough to support a growing economy, small business owners till
have a tougher time than bigger businesses holding onto workers
and dealing with rent and other costs.
“Small business owners are feeling more uncertain than ever,”
said NFIB Chief Economist Bill Dunkelberg. “Uncertainty makes
owners hesitant to invest in capital spending and inventory,
especially as inflation and financing costs continue to put
pressure on their bottom lines."
As they face uncertainty, small business owners are spending
less. The net percent of owners reporting inventory gains fell
four points to a net negative 13%, the lowest reading since June
2020. And 51% reported capital outlays in the last six months,
down five points from August, the lowest reading since July
2022.
One bright spot is jobs. Thirty-four percent of owners reported
job openings they could not fill in the current period, down six
percentage points from August and the lowest reading since
January 2021.
Despite signs that inflation is easing, it remains the top
concern for small business owners. Twenty-three percent of
owners said inflation was their single most important problem in
operating their business, particularly in terms of higher input
and labor costs.
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