According to Bloomberg, US small-business owners' optimism fell sharply in March, marking the biggest decline since mid-2022. The decline reflects concerns about economic conditions and sales volumes, which are under pressure from current trade policies.
The NFIB Small Business Optimism Index fell 3.3 points to 97.4. Expectations for improved business conditions plummeted 16 points, marking the largest decline since the end of 2020. Sales forecasts also took a hit, dropping 11 points and setting a new low for the year.
NFIB Chief Economist Bill Dunkelberg named the reasons for this negative trend. Among them — shifting political priorities under the current US leadership and growing uncertainty in the country.
Small-business operators are grappling with hiring difficulties, rising expenses, and worries over labor quality and taxes, Bloomberg reports. The NFIB survey showed 40% of firms had unfilled positions, while hiring intentions dropped 3 points. This data signaling growing caution about expansion.