The NFIB Small Business Optimism Index dropped 0.2 points in January to 99.3 but remains above the 52-year average of 98. The figure reflects a decrease in seven of the 10 optimism index components and an increase in three.
“While GDP is rising, small businesses are still waiting for noticeable economic growth,” NFIB Chief Economist Bill Dunkelberg said. “Despite this, more owners are reporting better business health and anticipating higher sales.”
The Uncertainty Index rose 7 points from December to 91. The main reason was business owners’ uncertainty about whether it is a good time to expand their business.
The Small Business Employment Index is 101.6, 1.5 points higher than its historical average.
Other findings include:
When asked their single most important problem, 13 percent of small-business owners reported the cost or availability of insurance, up 4 points from December, while 16 percent reported labor quality, down 3 points from December.
Over the next quarter, only 16 percent of business owners expect higher real sales volumes.
Price increases are higher than the historical average of a net 13 percent, suggesting continued inflationary pressure. A net 32 percent (seasonally adjusted) of business owners plan to increase prices over the next three months, up 4 points from December.