Eight of the 10 components that make up the index weakened, led by a 9-point slide in sales expectations. Some 37% of firms reported deteriorating earnings, the largest share since 2010, as elevated prices, interest rates and labour costs continue to take a toll.
US small-business optimism declined in August by the most in more than two years as earnings tumbled and firms grew more downbeat about prospects for sales and the economy.
The National Federation of Independent Business optimism index dropped 2.5 points, the most since June 2022, to 91.2 last month. The decline erased nearly half the advance over the previous four months.
