Small Business Optimism Index Hit 12-Year Low in March

Washington, DC, April 9, 2024-The NFIB Small Business Optimism Index decreased by 0.9 of a point in March to 88.5, the lowest level since December 2012. This is the 27th consecutive month below the 50-year average of 98. The net percent of owners raising average selling prices rose seven points from February to a net 28% percent seasonally adjusted.

“Small business optimism has reached the lowest level since 2012 as owners continue to manage numerous economic headwinds,” said NFIB chief economist Bill Dunkelberg. “Inflation has once again been reported as the top business problem on Main Street and the labor market has only eased slightly.”

Key findings include:

* The net percent of owners who expect real sales to be higher decreased eight points from February to a net negative 18% (seasonally adjusted).

* Twenty-five percent of owners reported that inflation was their single most important problem in operating their business (higher input and labor costs), up two points from February.

* Owners’ plans to fill open positions continue to slow, with a seasonally adjusted net 11% planning to create new jobs in the next three months, down one point from February and the lowest level since May 2020.

* Seasonally adjusted, a net 38% reported raising compensation, up three points from February’s lowest reading since May 2021.