US Small Business Optimism Takes a Hit in February

According to the National Federation of Independent Business (NFIB), the optimism among small business owners in the United States experienced a decline in February. The optimism index decreased by 2.1 points from January, settling at 100.7, which was lower than anticipated. Additionally, the uncertainty indicator climbed to its second-highest level ever recorded, reaching 104.

Economic Expectations and Business Expansion Plans Wane

Only 37% of small business owners are optimistic about the economy's improvement, marking a 10-point drop from January. Furthermore, just 12% believe it's a favorable time to expand their business, a decrease of 5 points from the previous month. On the pricing front, there's been a significant shift, with the net percent of owners increasing average selling prices rising by 10 points to a net 32%. This represents the largest monthly increase since April 2021. Additionally, 29% of owners are planning to implement price hikes in the coming three months, the highest figure in 11 months.