Why Small-Business Owners Are Suddenly Losing Faith in Sales—And What That Means for Your Next Move
Ever wonder what it feels like for small businesses right now? Picture this: owners clinging to optimism like a lifebuoy, only to watch their sales expectations dip for the second month running. February wasn’t exactly a stroll in the park, as the National Federation of Independent Business revealed a creeping pessimism among business owners, shadowed by worries over the economy and future revenues. The share of owners expecting sales to actually improve shrank by 8 percentage points to a modest 8%, a far cry from the one-year high in January. Hiring plans? They cooled off too, hitting their lowest point since May. But here’s the curious twist—profits are actually looking up, with positive profit trend reports hitting their best mark since December 2021. Inflation? It’s inching back down, with fewer owners pushing prices higher for a third straight month. It’s almost like small businesses are juggling knives—walking a tightrope between caution and growth. Curious about how this balancing act plays out in detail? LEARN MORE
Small businesses are feeling the pinch. Optimism about sales declined for a second month in February, according to the National Federation of Independent Business. The reason? Owners are growing more pessimistic about the economy and future revenue.
The net share of owners who said they expect inflation-adjusted sales to improve fell 8 percentage points to 8%, after reaching a one-year high in January. Meanwhile, hiring plans cooled, with fewer businesses planning to add employees than at any point since May.
But there’s a silver lining. The net percentage of businesses reporting positive profit trends rose 7 points to the highest since December 2021. Inflationary pressures also continued to gradually ease, with the net share of owners who raised average selling prices declining for a third straight month to 24%.
Small businesses are feeling the pinch. Optimism about sales declined for a second month in February, according to the National Federation of Independent Business. The reason? Owners are growing more pessimistic about the economy and future revenue.
The net share of owners who said they expect inflation-adjusted sales to improve fell 8 percentage points to 8%, after reaching a one-year high in January. Meanwhile, hiring plans cooled, with fewer businesses planning to add employees than at any point since May.
But there’s a silver lining. The net percentage of businesses reporting positive profit trends rose 7 points to the highest since December 2021. Inflationary pressures also continued to gradually ease, with the net share of owners who raised average selling prices declining for a third straight month to 24%.
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