STORY: Sentiment among U.S. small business owners in March slipped to its lowest level in more than 11 years amid rising concerns about inflation.
That’s according to a survey out Tuesday from the National Federation of Independent Business.
The organization’s optimism index – which has averaged a reading of 90 over the past 50 years – came in at 88.5 last month, the lowest level since December of 2012.
It also marked the 27th month in a row that the index’s reading has fallen below the 50-year average.
Inflation worries were the main culprit with 25% of business owners reporting that higher input and labor costs posed the biggest challenges.
As a result, the share of businesses that raised their average selling prices in March rose 7 points from the month before.
That aligns with reports showing a pick-up in consumer prices in the first two months of the year.
The Federal Reserve has hiked interest rates to bring down decades-high inflation, which peaked at an annual rate of about 9% in the summer of 2022.
The latest data, due out Wednesday, is expected to show inflation has cooled to a rate of 3.4%, significantly lower than the peak but still above the central bank’s 2% target.