Small business optimism dipped in December: NFIB

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The NFIB's Small Business Optimism Index declined in December as small business owners remained pessimistic about economic conditions amid the struggle with inflation.

FHN Financial chief economist Chris Low gives his take on the impact of Fed Chair Powell's policies on"Making Money."declined in December amid the ongoing struggle with inflation and concerns about the economy slipping into recession, according to the latest report by the National Federation of Independent Business .

The NFIB's Small Business Optimism Index fell to 89.8 in December – its lowest level since June of last year – and remained below the 49-year average of 98 for the 12th consecutive month. Pessimism about economic conditions, rising prices and hiring difficulties contributed to the decline. "Overall, small business owners are not optimistic about 2023 as sales and business conditions are expected to deteriorate," NFIB Chief Economist Bill Dunkelberg said in a statement. "Owners are managing several economic uncertainties and persistent inflation and they continue to make business and operational changes to compensate.

Although a majority of small businesses were hiring, 41% reported they had job openings they weren't able to fill in December. While that was the lowest level of 2022 and represented a three-percentage-point decline compared to November, the metric remains historically high relative to monthly surveys in the years before the COVID-19 pandemic.

– up from 22% a year ago. Higher prices facing small businesses and their consumers contributed to a dip in sales expectations over the next three months, which came in at a net negative 10%, a decline of two percentage points compared to November.

 

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MIGOP I’d be less optimistic too when huge corporations get unfair advantages all to appease the GOP and their cronies.

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