Core Insights - Small business sentiment declined in October due to the ongoing U.S. government shutdown and hiring difficulties, leading to concerns among owners [1][2][7] - The NFIB Small Business Index fell to 98.2, marking a slight decrease for the second consecutive month and remaining just above the 52-year average [2][7] Economic Impact - Small businesses are crucial to the U.S. economy, contributing to approximately 60% of new job creation, making their sentiment a significant indicator of hiring and overall economic conditions [3] - The government shutdown has extended into its 42nd day, creating uncertainty in economic data and affecting various sectors, including air travel [4] Hiring and Sales Challenges - Nearly 90% of small business owners reported difficulties in finding qualified employees, with labor quality being the most pressing issue, particularly in the construction industry [8] - The percentage of owners reporting higher sales dropped by six points, while those reporting higher profits fell by nine points, indicating deteriorating sales and profit levels [9] Future Outlook - Despite the declines, a positive outlook remains as the number of businesses expecting sales to improve is still favorable, and plans for capital expenditures have reached their highest levels of the year [10] - The uncertainty index fell by 12 points to a reading of 88, the lowest in a year marked by various economic challenges, suggesting a slight stabilization in economic conditions [10]