Small Business Optimism Hits Lowest Level Since 2012

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The NFIB's business optimism survey showed a reading of 88.5, down nearly a point from February and the lowest since December 2012. A quarter of all respondents cited inflation, and in particular higher input and labor costs, as their most pressing issue. Small business confidence hit its lowest level in more than 11 years for March as proprietors worried that inflation is still very much a problem.

The NFIB's business optimism survey showed a reading of 88.5, down nearly a point from February and the lowest since December 2012.

"Small business optimism has reached the lowest level since 2012 as owners continue to manage numerous economic headwinds," NFIB Chief Economist Bill Dunkelberg said."Inflation has once again been reported as the top business problem on Main Street and the labor market has only eased slightly." put the annual inflation rate at 2.5% in February. The measurement, which the Federal Reserve uses as its main inflation gauge, showed a 2.8% level when excluding food and energy, which policymakers prefer as a better sign of longer-run trends.

 

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