Economic sentiment among small businesses in the United States shows a mixed picture, with overall confidence generally stable. The National Federation of Independent Businesses reported a slight fall in its Small Business Optimism Index, with 26% of owners citing labour quality as their top concern and 20% concerned about inflation. Expansion plans have weakened, though 17% still intend to add jobs in the next three months.
However, the Justworks/US Chamber Small Business Index indicated a significant improvement in small-business confidence during the third quarter. A survey of 750 small businesses found 72% are comfortable with their current cash flow, although only 27% believe the US economy is in good health. Inflation remains the primary concern for 54% of owners.
Hiring activity is neither strong nor weak. Gusto estimated that small businesses added 28,000 jobs in September, continuing an eight-month trend of employment gains. ADP reported that US private employers added 90,000 jobs in September, with establishments employing one to 19 workers contributing 18,000 jobs. Conversely, Intuit's QuickBooks Small Business Index indicated a decline of 7,000 jobs in September for businesses with one to nine employees.
Revenues for small businesses remain solid. Intuit's QuickBooks data shows a 1.68% increase in inflation-adjusted average monthly revenue, with growth across most industries and regions. Fiserv also reported improving sales among US small businesses in September, though consumer behaviour remains selective with weaker traffic despite increased spending per customer.