Small business optimism plummets amid growing economic uncertainty

foxbusiness.com:

Bank of America President of Small Business and Head of Specialty Bank & Lending Sharon Miller discusses the release of the 2023 Small Business Owner Report and breaks down the top concerns faced by business owners.

Small business sentiment plummeted in the final three months of the year, reflecting fears over the near-term economic outlook, persistent worker shortages and chronic inflation. 

The Small Business Index, published by MetLife and the U.S. Chamber of Commerce, sank to 61.3 last month, a 7.9 percentage point decrease from the previous quarter. It marks a return to the low scores seen earlier this year and in late 2022.

«With inflation still outpacing revenue expectations, small business owners are wary of the future and continue to have an overall negative impression about the national economy,» said Tom Sullivan, vice president of small business policy at the Chamber of Commerce.

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«We are Closing, thanks for your support and business after 35 years» sign posted on a small business door in Queens, New York. (Lindsey Nicholson/UCG/Universal Images Group via Getty Images / Getty Images)

The decline stems from a worsening view of the U.S. economy. 

Just one-quarter of small businesses say the national economy is in «good health,» while 30% say their local economy is in good health – both down 8 percentage points from the previous quarter.

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Small business owners also remain worried about the state of still-high inflation. For the sixth straight quarter, 50% of small businesses cited inflation as one of the biggest challenges that they are facing. Although the consumer price index has