New York [US], October 13 (ANI): Optimism among small businesses in the United States fell below its 52-year average in September as business owners faced rising uncertainty, persistent inflation and difficulties in finding qualified workers, according to the National Federation of Independent Business (NFIB) report.
The report highlighted that out of the index’s 10 components, three improved, six declined, and one remained unchanged. Worsening expectations about business conditions and a decline in the number of owners who considered it a good time to expand contributed the most to the fall.
The report said, “The Small Business Optimism Index for September was 97.9, down 0.8 points from August and dropping below its 52-year average of 98.0”.
The Uncertainty Index, which measures how unsure business owners are about future conditions and business decisions, rose 1 point from August to 90. It remained well above its historical average of 68, reflecting concerns about expansion and investment plans.
Inflation remained a major concern for small businesses. The report found that 20 per cent of owners identified inflation as their biggest business problem in September, up 4 percentage points from August. A seasonally adjusted net 31 per cent of owners reported raising their average selling prices, while a net 31 per cent planned to increase prices over the next three months.
The report also highlighted continuing difficulties in the labor market. Around 26 per cent of small-business owners identified labor quality or availability as their most important problem, up 3 percentage points from August.
Meanwhile, 32 per cent reported job openings they were unable to fill, down 3 percentage points from the previous month.
The report also highlighted that business investment plans weakened. Only 22 per cent of owners planned capital expenditure over the next six months, down 2 percentage points from August. Capital expenditure refers to spending on long-term business assets such as equipment, vehicles and facilities.
The report said 51 per cent of small-business owners had made capital outlays during the previous six months, down 2 percentage points from August.
Profit trends remained weak, with the net share of owners reporting positive profit trends declining 1 percentage point. Among those reporting lower profits, 34 per cent cited weaker sales, while 24 per cent pointed to rising material costs.
The NFIB report is based on a survey conducted in the US in September 2026. A sample of 5,000 small-business owners was drawn, and 411 usable responses were received, representing a response rate of 8.2 per cent.
The report showed a mixed assessment of business health in September, with 13 per cent of owners rating their businesses as excellent, up 2 percentage points, while 48 per cent rated them as good, down 9 points. Meanwhile, 35 per cent described their businesses as fair and 4 per cent as poor.
The findings indicate that US small businesses entered September with weaker optimism, elevated uncertainty and continued pressure from prices, labor shortages and business costs.
The National Federation of Independent Business (NFIB) is the largest small business association and advocacy group in the United States. Founded in 1943 by C Wilson Harder, the non-profit organisation represents hundreds of thousands of small and independent business owners across all 50 states. (ANI)
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