Small Business Optimism Drops 1.4 Points Amid Mounting Inflation Concerns

Small business optimism slid 1.4 points to 95.7 on the NFIB Optimism Index in February. It is the second consecutive month the index has been below the 48-year average of 98.

Inflation was cited as the single most important problem by 26% of small business owners, a four-point increase since December and the highest reading since the third quarter of 1981.

“Inflation continues to be a problem on Main Street, leading more owners to raise selling prices again in February,” NFIB Chief Economist Bill Dunkelberg said in a statement. “Supply chain disruptions and labor shortages also remain problems, leading to lower earnings and sales for many.”

Small business owners expecting better business conditions over the next six months declined two points to a net negative 35%, and 48% of small business owners reported job openings that could not be filled, a one-point increase from January.

The full NFIB report can be found here.