• Sat. May 18th, 2024

US small-business confidence at its lowest point since 2012

BySamantha Johnson

Apr 9, 2024
US small-business confidence at its lowest point since 2012

Small business owners in the United States are feeling less optimistic in March, with sentiment reaching its lowest level in over 11 years. The National Federation of Independent Business released a survey on Tuesday revealing that the organization’s optimism index dropped to 88.5 last month, the lowest since December 2012. This marks the 27th consecutive month that the index has fallen below its 50-year average of 90.

One of the main concerns reported by business owners was rising inflation, with 25% of respondents citing higher input and labor costs as significant challenges. This led to an increase in the number of businesses raising their average selling prices in March, with a 7-point rise from the previous month. Consumer prices have also shown an uptick in the first two months of the year, reflecting these inflationary pressures.

To combat high inflation rates, the Federal Reserve has been increasing interest rates. Inflation reached a peak of about 9% in the summer of 2022, prompting the central bank to take action. However, the latest data expected to be released on Wednesday is anticipated to show a decrease in inflation to 3.4%, still above the 2% target set by the Federal Reserve.

By Samantha Johnson

As a content writer at newszkz.com, I delve into the realms of storytelling, blending words to paint vivid narratives that captivate and inform our readers. With a keen eye for detail and a passion for research, I craft compelling articles that resonate with our audience. My love for words drives me to explore diverse topics, ensuring that each piece I create not only educates but also entertains. Join me on this journey as we navigate the ever-evolving landscapes of news and knowledge together.

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