Small Business Optimism Declines in March

The National Federation of Independent Business (NFIB) revealed that small business optimism in the United States took a downturn in March. The optimism index fell by 3.3 points to 97.4, not only below the 51-year average of 98 but also missing market expectations.

Key Findings from the Report

The Uncertainty Index saw a significant drop, decreasing eight points from February's second-highest recorded reading to 96. A notable 16-point plunge brought the net percentage of owners expecting better conditions down to 21%, marking the steepest fall since December 2020.

Concerns over taxes climbed to 18%, reaching their highest since late 2021, closely trailing labor quality concerns at 19%. Sales expectations weren't spared either, falling 11 points to a mere 3%, while price hikes slightly eased to a net 26%. Despite this, 30% of businesses still plan to implement price hikes in March, setting a one-year high.