NFIB small business optimism index sinks to lowest level in almost two years

The National Federation of Independent Business' small business optimism index declined for a third straight month in March, falling from 95.7 in February to 93.2 - the lowest since April 2020.

The percentage of owners expecting better business conditions over the next six months decreased 49%, the lowest level on record, with inflation seen as the most important problem by 31% of business owners, the biggest share since the first quarter of 1981.

"With inflation, an ongoing staffing shortage, and supply-chain disruptions, small-business owners remain pessimistic about their future business conditions. Their expectations for sales growth and business conditions later this year are in the tank" said NFIB chief economist Bill Dunkelberg.