The National Federation of Independent Business (NFIB) announced on Tuesday
its Small Business Optimism Index decreased by 0.8 points to 90.1 in March,
following a 0.6-point advance in the previous month. That was the
lowest reading in three months and marked the 15th straight month
below the 49-year average of 98.0.
According to the report, 6 of the 10
components of the index dropped in March, while three rose and one was unchanged. The measure of small business owners expecting
real sales to be higher (-6 points) registered the largest decline in March. It was
followed by the gauges of the owners that reported job openings were hard to
fill (-4 points) and thought that now is a good time to expand (-4 points). Meanwhile,
the indicators of owners that reported positive profit trends (+5 points) and viewed
current inventory stocks as “too low” (+5 points) recorded the biggest gains last
month.
Commenting on the latest data, William Dunkelberg, NFIB Chief Economist,
noted that the owners of small businesses are cynical about future economic
conditions. “Hiring plans fell to their lowest level since May 2020, but strong
consumer spending has kept Main Street alive and supported strong labor demand,”
he added.