The National Federation of Independent Business (NFIB) reported a slight rise in its Small Business Optimism Index for December, reaching 91.9. This marked a 1.3 point increase but remained below the 50-year average of 98 for the 24th consecutive month.
Inflation emerged as the leading challenge for small business owners, with 23% citing it as their main operational issue, ahead of labor quality concerns. NFIB Chief Economist Bill Dunkelberg expressed a bleak outlook among business owners regarding economic conditions in 2024, emphasizing ongoing struggles with inflation and labor quality.
“Inflation and labor quality have consistently been a tough complication for small business owners, and they are not convinced that it will get better in 2024,” Dunkelberg said in a statement.
