Small Business Optimism Rose in October

The National Federation of Independent Business (NFIB) Small Business Optimism Index rose by 2.2 points in October to 93.7. The Uncertainty Index rose seven points to 110, the highest reading recorded.

As reported in NFIB’s monthly jobs report, a seasonally adjusted 35 percent of all small business owners reported job openings they could not fill in October, up one point from September’s lowest reading since January 2021. Of the 53 percent of owners hiring or trying to hire in October, 87 percent reported few or no qualified applicants for the positions they were trying to fill.

A net negative 20 percent of all owners (seasonally adjusted) reported higher nominal sales in the past three months, down three points from September and the lowest reading since July 2020. The net percent of owners expecting higher real sales volumes rose five points to a net negative 4 percent (seasonally adjusted), the highest reading of this year.

The net percent of owners raising average selling prices fell one point from September to a net 21 percent seasonally adjusted. Twenty-three percent of owners reported that inflation was their single most important problem in operating their business, unchanged from September and remaining the top issue.

Seasonally adjusted, a net 31 percent reported raising compensation, down one point from September. Eight percent of owners cited labor costs as their top business problem, down one point from September and only five points below the highest reading of 13 percent reached in December 2021. Twenty percent said that labor quality was their top business problem, remaining behind inflation as the number one issue.

This survey was conducted in October 2024.

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