The Nationwide Federation of impartial Enterprise (NFIB)’s Small Enterprise Optimism Index decreased in February to 89.4, marking the twenty sixth consecutive month beneath the 50-year common of 98. Twenty-three p.c of small enterprise house owners reported that inflation was their single most essential enterprise drawback in working their enterprise, up three factors from final month and changing labor high quality as the highest drawback.

“Whereas inflation pressures have eased since peaking in 2021, small enterprise house owners are nonetheless managing the elevated prices of upper costs and rates of interest,” mentioned Invoice Dunkelberg, chief economist for NFIB. “The labor market has additionally eased barely as small enterprise house owners are having a better time attracting and retaining workers.”

Key findings embrace:

• Experiences of labor high quality as the one most essential drawback for enterprise house owners decreased 5 factors to 16 p.c, the bottom studying since April 2020.
• Small enterprise house owners’ plans to fill open positions proceed to sluggish, with a seasonally adjusted internet 12 p.c planning to create new jobs within the subsequent three months, the bottom stage since Might 2020.
• Thirty-seven p.c (seasonally adjusted) of all house owners reported job openings they might not fill within the present interval, down two factors from January and the bottom studying since January 2021.
• As reported in NFIB’s month-to-month jobs report, 56 p.c of homeowners reported hiring or attempting to rent in February. Twenty-five p.c of homeowners reported few certified candidates for his or her open positions and 26 p.c reported none.

The online p.c of homeowners elevating common promoting costs declined one level from January to a internet 21 p.c (seasonally adjusted), the bottom studying since January 2021. Twenty-three p.c of homeowners reported that inflation was their single most essential drawback in working their enterprise, changing labor high quality as the highest drawback.

Seasonally adjusted, a internet 35 p.c reported elevating compensation, down 4 factors from January and the bottom studying since Might 2021. A seasonally adjusted 19 p.c plan to lift compensation within the subsequent three months, down seven factors from January and the bottom since March 2021.

Eleven p.c cited labor prices as their high enterprise drawback, up one level from January and solely two factors beneath the very best studying of 13 p.c reached in December 2021. Sixteen p.c mentioned that labor high quality was their high enterprise drawback, the bottom studying since April 2020.