Source: Sharecast
Labour quality and availability stayed the most‑cited problem for a third straight month, reported by 26% of owners, while inflation was the second‑largest concern, rising to 20% of respondents, far above its historical average.
Expectations for better business conditions weakened again, with a net 6% of owners anticipating improvement over the next six months. Only 7% said it was a good time to expand, down sharply from August.
Owners' assessment of their business health also deteriorated - 35% described conditions as "fair", up seven points, while those reporting "good" fell nine points to 48%.
Inventory trends softened, with the net share reporting inventory gains dropping to ‑10%, the lowest since September 2024.
Financing costs also continued to rise, with a net 8% of owners paying higher interest rates on their latest loan, and average short‑maturity borrowing costs climbing to 8.2%.
Labour shortages persisted. 32% of owners reported job openings they could not fill, and among those hiring, 87% said qualified applicants were scarce. Hiring intentions were unchanged, with a net 17% planning to add jobs in the next three months.
"Small business optimism near the long-term average in September as Main Street owners remain uncertain about business conditions," said NFIB chief economist Bill Dunkelberg. "Small business owners are proceeding with caution as they interpret how rising costs, interest rates, and the difficulty in finding qualified employees are impacting their business."
Reporting by Iain Gilbert at Sharecast.com