NFIB Small Business Optimism falls to 97.9 in September
The index missed forecasts of 98.2 and slipped below its 52-year average of 98.0, NFIB data show.
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The NFIB Small Business Optimism Index fell to 97.9 in September, down from 98.7 in August and below the 98.2 reading economists had expected. It was the second straight monthly decline and left the index below its 52-year average of 98.0, according to ForexFactory, which cited the NFIB report.
Of the index's 10 components, six fell, three rose and one held steady in September, ForexFactory reported, citing the NFIB report. Worsening views of future business conditions and fewer owners saying it is a good time to expand accounted for most of the decline, the same report said.
Small businesses make up a large share of private hiring and capital spending, so a softer optimism reading suggests employers are pulling back on expansion even as broader growth measures have held up. The decline comes as uncertainty over tariffs and borrowing costs weighs more heavily on smaller firms, which tend to have less pricing power and less access to credit than larger companies. A continued slide would add to signs that the labor market's resilience is narrowing to a smaller group of large employers.