Small business optimism hits lowest level since 2012: NFIB

foxbusiness.com:

UBS managing director and senior portfolio manager Jason Katz says the 2% inflation target is arbitrary on Varney & Co.

Small business optimism declined in March to its lowest level in more than a decade according to a new report from the National Federation of Independent Businesses (NFIB).

NFIB's Small Business Optimism Index, which is compiled monthly through a survey of small businesses, decreased in March by 0.9 of a point to 88.5, which is lowest reading since December 2012 and marks the 27th consecutive month with the index below the 50-year average of 98.

NFIB Chief Economist Bill Dunkelberg said that small business owners' optimism declined as they «continue to manage economic headwinds» and added, «Inflation has once again emerged as the top business problem on Main Street and the labor market has only eased slightly.»

One-fourth of small business owners said inflation was the most important problem in operating their business due to higher input and labor costs – up 2 percentage points from February and 1 percentage point from 24% a year ago. 

JAMIE DIMON WARNS INFLATION, INTEREST RATES MAY REMAIN ELEVATED

The NFIB's Small Business Optimism Index dropped in March to its lowest level since December 2012. (Noam Galai/Getty Images / Getty Images)

In line with concerns about inflation, the percentage of owners who reported that they raised average selling prices rose by 7 points from February to a net 28% on a seasonally adjusted basis. The net percentage of small business owners who said they expect real sales to be higher decreased by eight points from February to a net negative 18%.

NFIB wrote that the report's findings indicate the «small business sector is showing signs of a potential slowdown.» 

The