Washington, DC, April 9, 2024 – The NFIB Small Business Optimism Index experienced a decline of 0.9 points in March, reaching a low of 88.5, the lowest level seen since December 2012. This marks the 27th consecutive month below the 50-year average of 98. Notably, the net percentage of owners increasing average selling prices saw a significant rise of seven points from February, reaching a seasonally adjusted net of 28%.

Small business owners are facing multiple economic challenges, resulting in the lowest optimism levels seen since 2012. NFIB chief economist Bill Dunkelberg commented, “Inflation remains a significant concern for Main Street businesses, and the labor market shows only slight signs of improvement.”

Some key findings from the report include:

* The net percentage of owners anticipating higher real sales declined by eight points in February to a net negative 18% (seasonally adjusted).

* A quarter of owners highlighted inflation as their primary operational challenge, mainly due to increased input and labor costs, reflecting a two-point rise from February.

* Plans for hiring are slowing down, with a seasonally adjusted net of 11% planning to create new jobs in the next three months, marking the lowest level since May 2020.

* Compensation increases were reported by a net of 38%, up by three points from February and reaching the highest level since May 2021.