US small business optimism declines slightly in October
Small business confidence in the U.S. saw a slight decline in October, with the NFIB Small Business Optimism Index falling 0.6 points to 98.2, just shy of analyst expectations. Lower sales and reduced profits were cited as key factors. Despite the drop in optimism, the uncertainty index reached its lowest level this year, even as businesses continue to struggle with a severe labor shortage.
Small business confidence in the United States deteriorated in October, according to the latest data released by the National Federation of Independent Business (NFIB) on Tuesday.
The NFIB Small Business Optimism Index fell by 0.6 points to a reading of 98.2. While this represented a slight decline, the index remained marginally above its 52-year historical average of 98.0. The actual reading came in just below the 98.3 level that analysts had been expecting.
In contrast, the uncertainty index saw a significant drop, falling 12 points from September to 88.0, marking the lowest reading recorded this year.
Bill Dunkelberg, NFIB chief economist, commented on the results: "Optimism among small businesses declined slightly in October as owners report lower sales and reduced profits."
Dunkelberg also highlighted ongoing operational challenges for businesses: "Additionally, many firms are still navigating a labour shortage and want to hire but are having difficulty doing so, with labour quality being the top issue for Main Street."
