Connect with us

Hi, what are you looking for?


Small Business Optimism Drops To More Than 11-Year Low As Inflation Crushes Americans

This article was originally published at Publications approved for syndication have permission to republish this article, such as Microsoft News, Yahoo News, Newsbreak, UltimateNewswire and others. To learn more about syndication opportunities, visit About Us.

Small business owners


Small business owners’ confidence in the future of their businesses and the economy hit a seven-year low, as reported by the National Federation of Independent Business (NFIB).

Significantly lower


The small business optimism index dropped to 88.5, significantly lower than the long-term average of 98.



Among the various aspects surveyed, the expectation of higher sales volume saw the biggest decline of 8 points, with a total of -18%, indicating widespread pessimism among owners regarding their businesses’ sales prospects.

Future earnings


Although there was a slight uptick of 3 points in future earnings expectations among small businesses, the sentiment remained significantly negative at -36%, as reported by the NFIB.



The only other category showing improvement was earning trends, which rose by 2 points to -29%.



Around a quarter of small business owners identified inflation as their primary concern, marking a 2-percentage point increase from February, according to the NFIB.

Selling prices


Additionally, a net of 28% of owners raised their average selling prices in response to escalating costs, a 7-point increase from the prior month.

Joe Biden


Since President Joe Biden assumed office in January 2021, prices have surged by 18.5%, with a recent 3.2% year-over-year increase as of February.


NBC News

This puts pressure on businesses grappling with escalating costs.

Federal funds

NBC News

In response to mounting inflation, the Federal Reserve has set its federal funds rate between 5.25% and 5.50%, the highest level in over two decades.

Borrowing costs

NBC News

This has led to increased borrowing costs for both businesses and consumers.

Labor quality

NBC News

In March, labor quality emerged as the primary concern for 18% of small business owners, a 2-point rise from the previous month, particularly affecting employers in the transportation, construction, and services sectors who faced challenges in filling job vacancies, as per the NFIB.

U.S. economy

NBC News

The U.S. economy added 303,000 nonfarm payroll jobs in March, surpassing the 275,000 jobs added in February.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like