Optimism and uncertainty high among small business owners

(The Center Square) – Optimism is high among small business owners, but so is uncertainty, according to a new survey from the National Federation of Independent Business.

Small business advocacy organization the National Federation of Independent Business has been collecting survey data since 1973, and optimism remains a few points above the 51-year average at 102.8, though it fell by 2.3 points in January. In December, small business optimism reached 105.1 points, the highest it has been since 2018.

The slight dip in optimism may reflect a spike in uncertainty, as the group's Uncertainty Index “rose 14 points to 100 – the third highest recorded reading – after two months of decline.”

“Overall, small business owners remain optimistic regarding future business conditions, but uncertainty is on the rise,” NFIB Chief Economist Bill Dunkelberg said in a statement. 

Inflation and a tight labor market continue to plague small business owners, with nearly 40% rating one or the other as their top concern.

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“A seasonally adjusted 35% of all owners reported job openings they could not fill in the current period,” the group said.

“Hiring challenges continue to frustrate Main Street owners as they struggle to find qualified workers to fill their many open positions," Dunkelberg said. "Meanwhile, fewer plan capital investments as they prepare for the months ahead."

Amid the host of executive orders flowing out of the White House are several directly concerning the economy.

Executive Order 14192 allows government agencies to create new regulations – as long as they’re willing to purge 10 existing ones and the “total incremental cost… including repealed regulations… shall be significantly less than zero.”