(Bloomberg) -- US small-business optimism was little changed in September as firms dialed back capital spending plans, illustrating historically high uncertainty ahead of the US presidential election.
The National Federation of Independent Business optimism index edged up 0.3 point to 91.5 after declining in August by the most in more than two years. The group’s uncertainty index rose 11 points to a record high as small-business owners await the outcome of the November election.
Three of the 10 components that make up the optimism index fell, while five increased and two held steady. The share of firms planning capital expenditures slid by 5 points to 19%, the lowest reading since April 2023. Some 34% of firms reported job openings they couldn’t fill, the smallest share since the start of 2021.
Twenty-three percent of small-business owners reported that inflation was their single most important problem, down 1 point from August but still the top issue as elevated prices and interest rates continue to take a toll.
While a net 15% of owners said they plan to create jobs in the next three months, up 2 percentage points from the prior month, hiring plans are still below the levels seen the last time the economy experienced solid growth, NFIB said.
Among those reporting lower profits, 37% blamed weaker sales and 14% said the decline was due to prices of materials. Labor costs were cited by another 13%, and 11% singled out lower selling prices.
Results of the NFIB survey were based on 559 respondents through Sept. 27.
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