Small business optimism in US remains historically low in Sept: NFIB

The uncertainty index rose by 11 points to 103, the highest reading recorded.

Fifty-one per cent of owners reported capital outlays in the last six months, down five points from August. Meanwhile, the number of owners reporting inventory gains fell by four points to a net negative 13 per cent (seasonally adjusted)—the lowest since June 2020.

“Small business owners are feeling more uncertain than ever,” said NFIB chief economist Bill Dunkelberg in a release.

“Uncertainty makes owners hesitant to invest in capital spending and inventory, especially as inflation and financing costs continue to put pressure on their bottom lines. Although some hope lies ahead in the holiday sales season, many Main Street owners are left questioning whether future business conditions will improve,” he noted.

Thirty-four per cent (seasonally adjusted) of all owners reported job openings they could not fill in the current period—down by six points from August and the lowest since January 2021.

A net 12 per cent of owners reported paying a higher rate on their most recent loan, down three points from August and the lowest reading since March 2022.

Fifty-one per cent reported capital outlays in the last six months—down by five points from August. The last time it was this low was July 2022.

Seasonally adjusted, a net 32 per cent reported raising compensation, down one point from August and remaining the lowest reading since April 2021.

Twenty-three per cent of owners reported that inflation was their single most important problem in operating their business (higher input and labour costs), down one point from August, but remaining the top issue.

As reported in NFIB’s monthly jobs report, a seasonally-adjusted 34 per cent of all small business owners reported job openings they could not fill in their current period, down six points from August and the lowest reading since January 2021.

Of the 59 per cent of owners hiring or trying to hire in September, 90 per cent reported few or no qualified applicants for the positions they were trying to fill.

Fifty-one per cent of owners reported capital outlays in the last six months, down five points from August.

A net negative 17 per cent of all owners (seasonally adjusted) reported higher nominal sales in the past three months, down one point from August and the lowest reading of this year. The net per cent of owners expecting higher real sales volumes rose nine points to a net negative 9 per cent (seasonally adjusted).

A net negative 4 per cent (seasonally adjusted) of owners viewed current inventory stocks as “too low” in September, up one point from August.

Two per cent of owners reported that all their borrowing needs were not satisfied. Twenty-four per cent reported all credit needs met and 62 per cent said they were not interested in a loan. A net 8 per cent reported their last loan was harder to get than in previous attempts.

Four per cent of owners reported that financing was their top business problem in September, unchanged from August.

Fibre2Fashion News Desk (DS)