Small Business Sentiment Declines

The National Federation of Independent Business (NFIB) reported a notable decrease in small business optimism across the United States this March. The optimism index fell by 3.3 points to 97.4, dipping below the 51-year average of 98 and missing market expectations.

Key Findings from the Report

Among the concerning trends, the Uncertainty Index saw an eight-point drop from February's peak, landing at 96. Expectations for better business conditions plummeted by 16 points to just 21%, marking the most significant decline since December 2020.

Concerns over taxes climbed to 18%, reaching their highest since late 2021, closely trailing labor quality issues at 19%. Sales expectations weren't spared, falling 11 points to a mere 3%.

Price Adjustments on the Horizon

Despite a slight easing in price hikes to a net 26%, a striking 30% of business owners are planning price increases in March, setting a one-year high.