Small business optimism fell 3.0 points in March to 95.8, sinking below the 52-year average of 98.0, while uncertainty rose 4 points to 92, far surpassing its historical average of 68, according to the National Federation of Independent Business’s Small Business Optimism Index and Uncertainty Index.
“The 20% Small Business Deduction and other supportive small business tax provisions in the Working Families Tax Cut Act have had many positives for small business owners,” NFIB Chief Economist Bill Dunkelberg said. “However, the dramatic spike in oil prices has spooked consumers and owners alike. Small business owners are having to absorb those higher input costs and pass them along to their customers.”
Other findings include:
- The frequency of owners reporting positive profit trends decreased 11 points in March to a net negative 25% (seasonally adjusted).
- Owners expecting better business conditions fell 7 points to a net 11% (seasonally adjusted), the third consecutive monthly decline.
- Owners planning to make capital outlays in the next six months dropped 2 points to 16% (seasonally adjusted), the lowest level since November 2009.
- Owners reporting actual price increases rose 1 point in March to a net 25% (seasonally adjusted), after three consecutive months of decline.
The monthly decline in small business optimism aligns with the 1.9 point fall of NFIB’s Small Business Employment Index.
See all the findings from the Optimism Index here.
