Small Business Optimism Declines in March

According to the National Federation of Independent Business (NFIB), optimism among small businesses in the United States took a downturn in March. The optimism index fell by 3.3 points to 97.4, slipping below the 51-year average of 98 and missing market expectations.

Key Findings from the Report

The Uncertainty Index saw an eight-point decrease from February's second-highest recorded reading, settling at 96. A significant 16-point drop was observed in the net percentage of owners anticipating better conditions, marking the steepest decline since December 2020.

Concerns Over Taxes and Labor Quality emerged as prominent issues, with tax concerns reaching 18%, the highest since late 2021, closely followed by labor quality at 19%. Sales expectations also took a hit, falling 11 points to a mere 3%.

Price Hikes and Future Expectations

While price hikes saw a slight easing to a net 26%, a notable 30% of business owners still plan to increase prices in March, reaching a one-year high.