Small business optimism declined in March to its lowest level in more than a decade according to a new report from the National Federation of Independent Businesses .
Chief Economist Bill Dunkelberg said that small business owners' optimism declined as they "continue to manage economic headwinds" and added, "Inflation has once again emerged as the top business problem on Main Street and the labor market has only eased slightly.
It also found that 38% reported raising compensation, an increase of 3 points from February, which had the lowest reading since May 2021. Additionally, a net 21% of small business owners plan to raise compensation in the next three months – an increase of 2 points from February. The Higher interest rates have made it harder for small businesses to obtain capital, with a net 8% reporting that their last loan was harder to get than in previous attempts. A net 17% of small business owners reported paying a higher rate on their most recent loan, up 1 point from February.
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