U.S. small-business optimism fell more than expected in September due to increased uncertainty about the economy and concerns over tariffs, according to new survey results from the National Federation of Independent Business, or NFIB.
The NFIB's small-business optimism index dropped 1.3 points to 101.8 last month from 103.1 in August. The consensus estimate of economists polled by Econoday was for a reading of 102.0.
Small business owners are "eager to do more" but are uncertain about future economic conditions, according to NFIB President and CEO Juanita Duggan. "As small-business owners continue to invest, expand, and try to hire, they're doing so with less gusto than they did earlier in the year, thanks to the mixed signals they're receiving from policymakers and politicians."
The uncertainty index increased by 2 points in September and returned to "high levels of concern," as tariffs "adversely" affected several small firms, the NFIB said. Of the survey respondents, 30% reported the negative impact of tariffs.
The net percentage of business owners who said it was a good time to expand fell 4 points to 22%, the NFIB survey results showed, while the net percentage of those expecting business conditions to improve dropped 3 points to 9%.
The net percentages of business owners expecting higher real sales volumes, preparing capital outlays in the next six months, and planning to create new jobs all declined in September, the NFIB said.
Despite a drop last month, the small-business optimism index remained at historically high levels and was "consistent with solid, but slower growth," according to the NFIB.
