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.
Among those reporting lower profits, 31% blamed weaker sales and 17% said the decline was due to prices of materials. Labour costs were cited by another 13%.
Nearly a quarter of business owners indicated inflation was their single most important problem, well above the 3% long-term average from 1986 to mid-2020, according to the report.
As a result, small companies dialled back hiring plans. A net 13% of owners said they plan to create jobs in the next three months, down 2 percentage points from the prior month.
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The NFIB’s uncertainty index rose 2 points to the highest since October 2020.
Results of the NFIB survey were based on 590 respondents through Aug 29.
