Small-biz optimism in US at three-month low

US small-business optimism fell to a three-month low in September as economic expectations dimmed and a smaller share of firms indicated it was a good time to expand.

The National Federation of Independent Business index slipped 0.8 point to 97.9, according to data released on Tuesday. Six of the 10 components that make up the gauge declined, while three rose and one held steady. The net share of owners who expect business conditions to improve declined 4 percentage points to a four-month low of 6%. Persistent price pressures continue to weigh on small businesses as conflicts in West Asia and Europe keep energy costs high.

Last month, 20% of businesses said inflation was their single biggest problem, nearly three times the historical average of 7%. A net 31% plan to raise their own prices in the next three months, up from 28% in August and July.


With inflation stubborn and borrowing costs elevated, small businesses are more cautious about expanding. Capital spending plans dropped to a three-month low. "Small-business owners are proceeding with caution as they interpret how rising costs, interest rates, and the difficulty in finding qualified employees are impacting their business," NFIB Chief Economist Bill Dunkelberg said in a statement.