Source: Sharecast
The monthly Small Business Optimism Index fell to 100.7 in February, according to the National Federation of Independent Business, down from 102.8 in January.
While this was still above the 51-year average reading of 98, it was worse than the consensus forecast of 101.0.
The uncertainty sub-index rose 4 points over the month to its second-highest recorded level of 104.
“Uncertainty is high and rising on Main Street, and for many reasons,” said NFIB chief economic Bill Dunkelberg.
“Those small business owners expecting better business conditions in the next six months dropped and the percent viewing the current period as a good time to expand fell, but remains well above where it was in the fall. Inflation remains a major problem, ranked second behind the top problem, labor quality.”
A net 37% of business owners surveyed in February expected the economy to improve, down 10 points from January, while just a net 12% thought it was a good time to expand their business, down 5 points and the largest monthly decrease in nearly five years.
A net 32% of owners were raising average selling prices, up 10 points over the month and the third-highest level in the survey's history, while a net 29% are planning price hikes over the next three months, up 3 points.