U.S. small business confidence index drops to a six-month low as optimism rapidly diminishes

Gold Ten Data November 11th: Data shows that due to deteriorating profits and waning optimism about the economy, U.S. small business confidence declined in October to its lowest level in six months. The U.S. October NFIB Small Business Optimism Index fell to 98.2, with five of the ten components decreasing and four improving. Over the past three months, the net share of owners reporting improved profits dropped by 9 percentage points, the largest decline since the pandemic, constrained by weak sales and rising material costs. The overall index was also dragged down by diminished optimism about economic prospects. The net share expecting business conditions to improve over the next six months fell by 3 percentage points to 20%, the lowest since April. Although workforce quality remains the top concern for small businesses, owners are relatively optimistic about hiring challenges. The proportion of owners reporting unfilled job openings was 32%, unchanged from the lowest level since the end of 2020.