Small business optimism in US falls in August

​​​​​​​By Ovunc Kutlu

ISTANBUL (AA) - Optimism among small businesses in the US fell in August, erasing all of its gains in July, according to a report released Tuesday.

The National Federation of Independent Business (NFIB) said its Small Business Optimism Index decreased 2.5 points to 91.2 in August from 93.7 in July.

"This is the 32nd consecutive month below the 50-year average of 98", the NFIB said in a statement.

The Uncertainty Index, meanwhile, rose to 92 to mark its highest level since October 2020.

The report said inflation remains as the top issue among small business owners, with 24% of owners indicating it as their top business operating issue.

"The mood on Main Street worsened in August, despite last month’s gains," NFIB chief economist Bill Dunkelberg said in a statement. "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," he added.

The index provides an indication of the health of small businesses in the US, which account for approximately 50% of the nation's private workforce.