Small business optimism fell 2.3 points in January to 102.8, the National Federation of Independent Business’ Small Business Optimism Index report found.
However, January’s reading was the third consecutive month above the 51-year average of 98.
“Overall, small business owners remain optimistic regarding future business conditions, but uncertainty is on the rise,” NFIB Chief Economist Bill Dunkelberg said in a statement. “Hiring challenges continue to frustrate Main Street owners as they struggle to find qualified workers to fill their many open positions. Meanwhile, fewer plan capital investments as they prepare for the months ahead.”
The top issues for business owners in January were inflation and labor quality, with 18% of owners saying it was their most important problem in operating their business.
The percentage of owners expecting the economy to improve fell five points from December 2024 to 47% in January.
Read the full report here.
