(March 10): Sentiment among US small-business owners declined for a second month in February on less optimism about the outlook for sales and the economy.
The National Federation of Independent Business optimism index slipped 0.5 percentage point to 98.8, according to figures released Tuesday. The survey was conducted throughout February and reflected sentiment before the Iran war pushed up energy prices.
Four of the 10 components that make up the gauge decreased, while three increased. Three were unchanged.
The net share of owners who said they expect inflation-adjusted sales to improve fell eight percentage points to 8%, after reaching a one-year high in January. Meanwhile, the net percentage of businesses reporting positive profit trends rose seven points to the highest since December 2021.
The net share of owners who expect business conditions to improve declined three points to a three-month low and hiring plans continued to ease. The net share of firms expecting to increase employment fell to the lowest since May, highlighting a fragile US jobs market.
The survey also showed inflationary pressures continued to gradually ease prior to a spike in gasoline prices due to energy disruptions in the Middle East. The net share of owners who raised average selling prices declined for a third straight month, to 24%.
See also: US retail sales fell in January on fewer vehicle purchases
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