Small Business Owners Are Increasingly Worried About Economic Conditions

Core Insights - Small business optimism in the U.S. fell to its lowest level in three months, with the Small Business Optimism Index declining to 98.8, reflecting growing concerns about the economy [2][6] - The uncertainty index rose by seven points to 100, marking the fourth highest reading in the survey's 51-year history, indicating significant apprehension among business owners [3][6] Economic Conditions - Business owners expressed fears regarding future sales, inflation, supply chain disruptions, and inventory levels, contributing to the decline in optimism [2][4] - Only 23% of business owners expect improved conditions in the future, a drop of 11 percentage points from August [4] Supply Chain and Pricing - Supply chain disruptions affected 64% of small businesses, an increase of 10 percentage points from August, while 7% reported low inventory levels, the largest monthly drop recorded [5][6] - Nearly 25% of small businesses raised prices in September, a three percentage point increase, with 31% planning to raise prices in the next three months [7] Hiring and Profitability - Despite the challenges, hiring plans among small businesses reached their highest levels since January, and the ratio of business owners reporting profits versus losses was the highest since 2021 [7]