U.S. Small Business Confidence Held Steady in October
By Dean Seal
Confidence among U.S. small businesses didn't change much between October and September, though uncertainty within the group eased.
The National Federation of Independent Business said that its small-business optimism index moved down 0.1 points in October, to 97.8, continuing to hover just below its 53-year average. The reading has ticked down for three straight months after reaching a multimonth high in July. Economists polled by The Wall Street Journal expected an increase to 98.1 in October.
The survey provides a monthly snapshot of small businesses in the U.S., which account for nearly half of private-sector jobs. Small businesses are often more sensitive than larger firms to sudden price fluctuations, higher interest rates and broader economic uncertainty.
"There was little change in optimism among small businesses in October as owners navigated enduring challenges, though there were some encouraging developments," said NFIB Chief Economist Bill Dunkelberg.
The uncertainty index fell 6 points in October, to 84, its lowest level since last December, albeit still above the historical average of 68. More owners reported that their businesses were in good or excellent health and that actual sales improved, Dunkelberg said.
About 25% of small business owners said labor quality or availability was their single most important problem, down 1 point from September and the top reported issue for a fourth consecutive month.
Taxes came in second, supplanting inflation from September. Taxes were cited by 21% of owners as their single most important problem, up 10 points from the prior month and at the highest level since May 2021.
Expectations for better business conditions ahead improved after two months of deterioration. A seasonally adjusted net 8% of owners expect better business conditions over the next six months, up 2 points from September and above its average.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
November 10, 2026 06:14 ET (11:14 GMT)
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