Small businesses are feeling the pinch. Optimism about sales declined for a second month in February, according to the National Federation of Independent Business. The reason? Owners are growing more pessimistic about the economy and future revenue.
The net share of owners who said they expect inflation-adjusted sales to improve fell 8 percentage points to 8%, after reaching a one-year high in January. Meanwhile, hiring plans cooled, with fewer businesses planning to add employees than at any point since May.
But there’s a silver lining. The net percentage of businesses reporting positive profit trends rose 7 points to the highest since December 2021. Inflationary pressures also continued to gradually ease, with the net share of owners who raised average selling prices declining for a third straight month to 24%.
Small businesses are feeling the pinch. Optimism about sales declined for a second month in February, according to the National Federation of Independent Business. The reason? Owners are growing more pessimistic about the economy and future revenue.
The net share of owners who said they expect inflation-adjusted sales to improve fell 8 percentage points to 8%, after reaching a one-year high in January. Meanwhile, hiring plans cooled, with fewer businesses planning to add employees than at any point since May.
But there’s a silver lining. The net percentage of businesses reporting positive profit trends rose 7 points to the highest since December 2021. Inflationary pressures also continued to gradually ease, with the net share of owners who raised average selling prices declining for a third straight month to 24%.
