By Amina Niasse
NEW YORK (Reuters) - U.S. small business sentiment declined slightly again in September on continued concern over inflation and persistent labor shortages, a survey published on Tuesday showed.
The Small Business Optimism Index fell half a point last month to 90.8, according to the National Federation of Independent Business (NFIB). The index in September also remained below its 49-year average of 98 points for the 21st-straight month.
September's report was similar in tone to the one for August, which saw the first dip in optimism since April with businesses noting a tight labor market and inflation as top concerns.
“Owners remain pessimistic about future business conditions, which has contributed to the low optimism they have regarding the economy,” said Bill Dunkelberg, the NFIB’s chief economist. “Sales growth among small businesses has slowed and the bottom line is being squeezed, leaving owners few options beyond raising selling prices for financial relief.”
Amid the Federal Reserve's most aggressive rate hike campaign in decades, small businesses are facing higher borrowing costs for credit. Widespread economic uncertainty has also grown surrounding projections of future recession, weighing on the outlook for businesses.
The share of owners expecting better business conditions over the next six months fell six points to a net negative 43%. The portion of owners saying inflation was their main concern remained unchanged at a seasonally adjusted 23%, tied with the share citing labor difficulties.
Businesses in the construction, retail, manufacturing, and service industries most frequently reported labor shortages as a pressing concern. Ninety-three percent of businesses actively in the market to hire claimed to find no or few workers qualified for their positions.