Small business optimism drops for first time since June

From Bloomberg via Transport Topics.

Optimism among U.S. small businesses retreated in October for the first time in four months as the sales outlook worsened, while some measures of inflation accelerated.

The National Federation of Independent Business overall optimism index fell to 91.3 last month from 92.1, the group said in a report Nov. 8. Seven of the gauge’s 10 components decreased, led by both the retreat in sales expectations and a decline in the number of firms planning to hire.

The survey’s inflation metrics were mixed. The net share of owners raising prices ticked down for a fifth month to 50%, the lowest since September 2021 but still well-elevated. However, the share of firms planning to increase prices in the next three months rose for the first time since May, and about a third plan to raise compensation, the most this year.

A similar share see inflation as the single most important issue impacting small businesses, up from 30% in September.

See the complete article from Bloomberg via Transport Topics online.