Small business optimism fell 0.5 points month-over-month in February to 98.8, according to the National Federation of Independent Business’s Small Business Optimism Index. The reading remained slightly above the 52-year average of 98.
“Although optimism declined slightly, small businesses report feeling more certain in February as they look toward the coming months,” said NFIB Chief Economist Bill Dunkelberg. “High sales and increased profits made February a more positive month for many owners, but competition from large businesses is putting stress on Main Street firms as they navigate the current economic climate.”
Other findings from the report:
- The Employment Index rose by almost a point in February to 103.5, 3.5 points higher than its historical average of 100 and 2.3 points higher than its 2025 average.
- Labor quality was cited by 15% of small business owners as their single most important problem, down 1 point from January.
- A net 1% of all owners (seasonally adjusted) claimed higher nominal sales in the past three months, up 7 points from January.
- In regards to overall business health, 12% of owners rated it as excellent (down 2 points), 55% as good (up 1 point), 26% as fair (down 1 point), and 5% as poor (up 1 point).
Read the full report here.
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