Economic Buzz: US NFIB Small Business Optimism index declines marginally in Sep-26

The US NFIB Small Business Optimism Index declined 0.8 points in September to 97.9, one-tenth of a point below the 52-year average of 98.0. The Uncertainty Index rose 1 point to 90, remaining well above the historical average of 68. Labor quality or availability remained the top reported issue for the third consecutive month. Small business optimism stayed near the long-term average in September as Main Street owners remain uncertain about business conditions. Reports of “labor quality or availability” as owners’ single most important problem rose 3 points in September to 26%, making it the top reported issue for the third consecutive month.

The second top issue in September was inflation, with 20% of owners reporting it as their single most important problem, up 4 points from August. September’s reading remains elevated, with a historical average of 7%. Expectations for better business conditions worsened for the second consecutive month. A net 6% (seasonally adjusted) of owners expect better conditions in the next six months, down 4 points from August but remaining above average.

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