Small business owners were feeling uncertain about the future in February as they continued to tackle inflation and labor challenges.
According to Bloomberg data, the National Federation of Independent Business’ Optimism Index fell to 100.7 by 2.1 points in February, which is exactly below the economist to read 101.
The fourth straight month mark in this reading is more than 98 years old, but it is a decrease in December after the 105.1 elections in December.
NFIB’s Bill Dankelberg and Hollywood said in the report, “Uncertainty on the main street is growing and increasing, and for many reasons,” NFIB’s Bill Dankelberg and Hollywood said in the report. “How future progress is resolved, the future of the economy will be formed.”
Tuesday’s report decreased 7 of the 10 components of the index, causing a 10 -point loss by owners expecting better market conditions over the next six months. Meanwhile, NFIB’s uncertainty index increased by 4 points to 104, which reached a record high in February.
Among the owners who reported less profit, 40 % accused of sale, 11 % said the decline was due to labor costs, and 9 % cited the increasing content costs.
About 16 16 % of the owners reported that inflation was a major confusion that their business.
“Inflation remains a major problem, which is second to the top issue of labor standards.”
As a result, 32 % of business owners have increased their average sales prices, according to the report, the largest monthly increase in April 2021 and the third highest increase in survey date. And in the next three months, 29 % of the rise in prices is planned.
Labor is another headache, 38 % of small business owners report the start of the job that they could not fill in February, which indicates the most reading since August 2024. And the cost of maintaining staff has also put pressure on the owners, which 12 % cited the problem.
In particular, the report has not given any reference references, which have been a major problem for the stock market over the past few weeks as these new duties are implemented when some signs of wider economy are showing some signs of weakness.
In a research note on Monday, for example, John Hetzis, headed by Goldman Sex economists, raised his 2025 GDP forecast from 2.4 percent to 1.7 percent.
The firm wrote, “The reason for the lack is that the assumptions of our trade policy have become more negative.”
Danny Romero is a reporter of Yahoo Finance. Follow this on x @Danromero TV.
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