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June 15, 2024

Small business optimism drops in October

The latest report from the National Federation of Independent Business (NFIB) shows that business owners confidence in the U.S. economy is decreasing.

NFIB’s Small Business Optimism Index decreased by 0.9 points to 98.2 October, the group said in a news release.

While state data is not available, but NFIB Oklahoma Director Jerrod Shouse said, “Labor and inventory are clearly impacting Oklahoma’s small businesses. Owners are increasing wages and trying to adjust to breaks in the supply chain, but these issues definitely are affecting their ability to get their businesses back to where they were before the pandemic began.”

Among the findings in the latest report, according to NFIB:

  • The NFIB Uncertainty Index decreased seven points to 67.
  • Small business owners expecting better business conditions over the next six months fell four points to a net negative 37%. This indicator has declined 17 points over the past three months to its lowest level since November 2012.
  • As reported in NFIB’s monthly jobs report, 49% of owners reported job openings that could not be filled, a decrease of two points from September.
  • A net 44% of owners (seasonally adjusted) reported raising compensation, a 48-year record high reading.
  • A net 32% plan to raise compensation in the next three months.
  • A net negative 4% of all owners reported higher nominal sales in the past three months, down seven points from September.
  • A net 9% of owners viewed current inventory stocks as “too low” in October, down one point from last month and near a record high level.

“Small business owners are attempting to take advantage of current economic growth but remain pessimistic about business conditions in the near future,” NFIB chief economist Bill Dunkelberg said in a statement. “One of the biggest problems for small businesses is the lack of workers for unfilled positions and inventory shortages, which will continue to be a problem during the holiday season.”

This article was originally posted on Small business optimism drops in October

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