In March, the National Federation of Independent Business Small Business Optimism Index decreased by 0.9 of a point to 88.5—the lowest level since December 2012. It was the 27th consecutive month below the 50-year average of 98.
“Small business optimism has reached the lowest level since 2012 as owners continue to manage numerous economic headwinds,” said NFIB Chief Economist Bill Dunkelberg in a statement. “Inflation has once again been reported as the top business problem on Main Street, and the labor market has only eased slightly.”
Key findings for March included:
- The net percent of owners raising average selling prices rose seven points from February to a net 28% percent seasonally adjusted.
- The net percent of owners who expect real sales to be higher decreased eight points from February to a net negative 18% (seasonally adjusted).
- 25% of owners reported that inflation was their single most important problem in operating their business (higher input and labor costs), up two points from February.
- Owners’ plans to fill open positions continued to slow, with a seasonally adjusted net 11% planning to create new jobs in the next three months, down one point from February and the lowest level since May 2020.
- Seasonally adjusted, a net 38% reported raising compensation, up three points from February’s lowest reading since May 2021.
In NFIB’s monthly jobs report, 37% (seasonally adjusted) of owners reported job openings they could not fill in the current period. A net 21% (seasonally adjusted) plan to raise compensation in the next three months, up two points from February. The percent of small business owners reporting labor quality as their top small business operating problem rose two points from February to 18%. Labor cost reported as the single most important problem for business owners decreased by one point to 10%, only three points below the highest reading of 13% reached in December 2021.
The full report can be found here.
