The US Small Business Confidence Index fell to a six-month low, with optimism quickly fading.

Data shows that due to deteriorating profits and diminishing optimism towards the economy, confidence among small businesses in the United States declined in October, reaching the lowest level in six months. The NFIB Small Business Optimism Index for October dropped to 98.2, with five out of the ten components decreasing and four improving. In the past three months, the net percentage of owners reporting improved profits fell by 9 percentage points, marking the largest decline since the start of the pandemic, and was constrained by weak sales and rising material costs. The overall index was also weighed down by decreasing optimism towards the economic outlook. The net percentage of owners expecting improvement in activity over the next six months decreased by 3 percentage points to 20%, the lowest level since April. Despite labor quality remaining a top issue for small businesses, owners are relatively optimistic about hiring challenges. The percentage of owners reporting they are unable to fill job openings stood at 32%, unchanged from the lowest level seen since the end of 2020.