Independent Business Federation (NFIB) has declared a decline in small business optimism index for March 2025, 3.3 points 97.4. This, on the 51st annual index of 98 years, small business owners in the country, the ongoing policy, expressing concerns of the ongoing policy turns and economic conditions.
“The implementation of new policy priorities has increased the level of uncertainty between small business owners in the past few months,” NFIB Chief Economist Bill Dunkelberg. “Small business owners retracted expectations in sales growth because they realize how these adjustments can affect.”
The NFIB Uncertainty Index fell eight points from the near recording of February to 96.
Taxes and quality of employment are the best business concern
Eighteen percent of small business owners, the most important problem in March, increased the highest percentage of two-point growth since February and November 2021.
Other best concerns include inflation and labor costs. Sixteen percent of the owners pointed out the inflation as a major problem, and 11% pointed to labor expenses from February to one point.
Expectations and hiring trends are weak
The share of owners waiting for better business conditions has fallen sharply, 21% / season adjusted in season 16). This records the third straight month of expected expectations and represents a one month of a month since December 2020.
3% of the owners received 11 points lower than February, net minus 11%, higher nominal sales information in the last three months.
The hiring trends also reflect these careful expectations. Forturers of the owners said their jobs could not fill the two points in February. 53%, 87%, trying to hire in March, said they found several or no qualified applicants. It plans to create new jobs in the next three months, and there was 12% lower than three points.
Profit and price pressures continue
The largest monthly decline in December 2022, increasing the largest monthly landing prices (seasonally adjustable) net percentage (seasonally adjustable), 30% of the highest reading since 2024, increases 30% of the highest reading since 2024.
Profit trends remain weak, net minus 28%, positive profit trends, four points worse than February. Among the low-earning ones, 35%, weaker sales, 18% seasonal changes, 11% material expenditures and 8% labor costs. The higher profits were associated with stronger sales (55%), seasonal factors (16%) and increase in sales prices (11%).
Capital costs and credit conditions
Fifty nine percent of small business owners gave information about capital expenditures in the last six months. 43% of them received new equipment, 27% purchased vehicles and 16% improved devices. Thirteen percent spent on new devices or furniture and 5% won new buildings or lands.
The planned capital expenditures are slightly less, in the next six months, 21% in the next six months, in two points in February.
The login in credit seems to be hardened. 6% of the owners said their recent debts were more difficult for February since September 2023. Twenty-eight percent said he borrowed regularly and 4% said they were higher than the latest loans.
Expansion feelings are softened
Only 9% of small business owners said it was a good time to expand three points from the previous month. When evaluating the general health of their work, 11% “excellent”, 53% “good,” 31% “fair” and 4% “poor” evaluated.