NFIB’s Small Business Optimism Index Declines in October

The National Federation of Independent Business (NFIB), one of the largest small business associations in the US, reported today (11-8-22) their NFIB Small Business Optimism Index (SBOI) for October 2022. According to the report, the October SBOI declined 0.8 points to a reading of 91.3. This is the tenth consecutive month that the SBOI has been below the 49-year average reading of 98.

Thirty-three percent of owners reported that inflation was their single most important problem in operating their business. This is 3-points higher than September’s reading and four point lower than July’s highest reading since Q4 of 1979.

Other highlights of the SBOI include the following:

• Owners surveyed in October that are expecting better business conditions over the next six months declined 2 points from September to a net negative 46%.
• The net percentage of owners who expect real sales to higher decreased 3 points from September to a net negative 13%.
• The net percent of owners raising average selling prices dropped 1 point to net 50% (seasonally adjusted). Half of all firms are raising prices.

Adding additional background and his insight, NFIB Chief Economist Bill Dunkelberg said:

“Owners continue to show a dismal view about future sales growth and business conditions but are still looking to hire new workers. Inflation, supply chain disruptions and labor shortage continue to limit the ability of many small businesses to meet the demand for their products and services.”