U.S. small-business confidence in December fell to its lowest point in six months, according to a survey released by the National Federation of Independent Business (NFIB) on Tuesday. The Small Business Optimism Index fell 2.1 points to 89.8 last month; its lowest point since June 2022.
The latest results exhibit a decline in the share of small business owners who expected better business conditions over the past six months. This is the 12th consecutive month that the Small Business Optimism Index has remained below its 49-year average of 98.
According to 32% of owners that were surveyed, inflation remains a significant concern that they face. 43% of owners reported that a rise in average selling prices has hampered their confidence.
Government inflation data set to be released on Thursday is expected to show largely unchanged consumer prices, with the annual increase in inflation expected to be the smallest since October 2021.
William Dunkelberg, NFIB chief economist, commented that small business owners are largely expecting conditions to deteriorate further. “Owners are managing several economic uncertainties and persistent inflation and they continue to make business and operational changes to compensate,” Dunkelberg observed.