Small business owners remain optimistic about future economic conditions, but uncertainty and hiring challenges are on the rise. The NFIB Small Business Optimism Index fell by 2.3 points in January to 102.8, above the 51-year average of 98. However, the Uncertainty Index rose to its third-highest level, increasing concerns among Main Street owners.
The main findings include:
* A net 47% of owners expect the economy to improve, down from December’s 52%.
* Eighteen percent reported inflation as their top business problem, matching labor quality.
* Thirty-five percent reported job openings they could not fill in the current period.
* Twenty percent plan capital outlays in the next six months, down seven points from December.
Hiring challenges continue to frustrate small business owners as they struggle to find qualified workers. The number of owners reporting labor quality as a top issue decreased by one point from December. However, 18% still reported inflation as their top problem.
The NFIB Research Center has collected data on small business economic trends since the fourth quarter of 1973 and monthly surveys since 1986. This January survey was conducted among randomly drawn members of NFIB’s membership.
Source: https://www.nfib.com/news-article/new-nfib-survey-small-businesses-remain-optimistic-but-uncertainty-rising-on-main-street