WASHINGTON (dpa-AFX) - Optimism among small businesses in the U.S. was largely unchanged in September, but the feeling of uncertainty among them was the highest ever, results of a monthly survey by the National Federation of Independent Business (NFIB) showed Tuesday, apparently due to concerns over the economy and the outcome of the upcoming election.
The NFIB Small Business Optimism Index rose by 0.3 points in September to 91.5, which was way less than the score of 92.0 economists had expected.
The business confidence reading remained below the 50-year average of 98 for the 33rd consecutive month. The Uncertainty Index rose 11 points to 103, the highest reading recorded, the NFIB said.
'Small business owners are feeling more uncertain than ever,' NFIB Chief Economist Bill Dunkelberg said.
'Uncertainty makes owners hesitant to invest in capital spending and inventory, especially as inflation and financing costs continue to put pressure on their bottom lines.'
'Although some hope lies ahead in the holiday sales season, many Main Street owners are left questioning whether future business conditions will improve,' Dunkelberg added.
The survey also showed that 51 percent of small business owners reported capital outlays in the last six months, down five points from August. Looking ahead, 19 percent of owners plan capital outlays in the next six months, down five points from August.
Meanwhile, the number of owners reporting inventory gains fell four points to a net negative 13 percent, the lowest reading since June 2020.
In September, a seasonally adjusted 34 percent of all small business owners reported job openings that they could not fill in their current period. That was down six points from August and the lowest reading since January 2021.
Further, 59 percent of owners were hiring or trying to hire in September, but 90 percent of them reported few or no qualified applicants for the positions they were trying to fill.
The NFIB survey also showed that the net percent of owners expecting higher real sales volumes rose nine points to a net negative 9 percent.
Inflation remained the most important problem for 23 percent of owners in operating their business, down one point from August.
The share of businesses that raised selling prices rose two points from August to 22 percent. A net 25 percent planned price hikes in September.
Net 32 percent of small business owners reported raising compensation, down one point from August and was the lowest reading since April 2021. Net 23 percent plan to raise compensation in the next three months, up three points from August.
Copyright(c) 2024 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2024 AFX News
