Small business confidence dipped in August amid rising election uncertainty

foxbusiness.com:

Rep. Maria Salazar, R-Fla., on Vice President  Kamala Harris proposal to help small businesses and House Speaker Johnsons expected move to link the SAVE Act to federal funding.

Small business confidence fell in August and reversed the prior month's gains amid growing uncertainty ahead of the Nov. 5 presidential election and expectations that sales will be sluggish.

The National Federation of Independent Business (NFIB) said Tuesday that its Small Business Optimism Index dropped 2.5 points to 91.2 last month. That comes after it had surged in July to the highest reading since February 2022, though the August decline erased all of July's gain.

«The mood on Main Street worsened in August, despite last month's gains,» said NFIB Chief Economist Bill Dunkelberg. «Historically high inflation remains the top issue for owners as sales expectations plummet and cost pressures increase. Uncertainty among small business owners continues to rise as expectations for future business conditions worsen.»

«The stock market is expressing some unease… and the election is just weeks away,» he added. «Expect more volatility in everything in the coming months.»

US ECONOMY ADDED 142,000 JOBS IN AUGUST, MISSING EXPECTATIONS

The NFIB's small business confidence survey showed a decline in August that wiped out July's gains. (Noam Galai/Getty Images / Getty Images)

Inflation continues to be the top source of concern for small business owners, though the share ticked down by one point to 24% in August and fewer reported raising their average selling prices. 

The net percentage of owners expecting higher real sales volumes fell by nine points to a net negative 18%. Reports of positive profit trends were a net negative 37%, a decline of seven points