The NFIB Small Business Optimism Index fell by 2.5 points in August to 91.2, erasing all of July’s gain. This is the 32nd consecutive month below the 50-year average of 98. The Uncertainty Index rose to 92, its highest level since October 2020. Inflation remains the top issue among small business owners, with 24% of owners reporting it as their top small business operating issue, down one point from July.
Key findings include:
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The frequency of reports of positive profit trends was a net negative 37% (seasonally adjusted), seven points worse than in July and the lowest since March 2010;
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Twenty-four percent of owners reported inflation as their single most important problem in operating their business, down one point from July;
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The net percent of owners expecting higher real sales volumes fell nine points in August to a net negative 18% (seasonally adjusted), and real sales volume expectations were the largest contributor to the decline in the Optimism Index along with earning trends and expected business conditions;
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A seasonally adjusted net 20% plan to raise compensation in the next three months, up two points from July; and
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The net percent of owners raising average selling prices fell two points from July to a net 20%, seasonally adjusted.
Additional findings are available here.
