US small business optimism drops in October: survey

WASHINGTON - Confidence among US small businesses ticked downward in October as surging inflation impacted sentiment, according to a survey released Tuesday.

The National Federation of Independent Business (NFIB) said its Small Business Optimism Index dropped 0.8 points to 91.3 in October, marking the lowest level since July.

The slump occurred after two consecutive months of gains, which followed a downturn in business sentiment in the first half of 2022.

Thirty-three percent of small business owners said inflation was the most important issue in running their enterprises.

It is a three-point rise from September and four points under July's levels -- the highest since 1979.

The US Federal Reserve has boosted interest rates from almost zero at the start of the year to between 3.75 percent and 4 percent, as the central bank tries to fight against the highest inflation in four decades.

Rising prices are a hot-button issue in this year's midterms elections, as voters headed to the ballot boxes on Tuesday, concerned over inflation, which rose 8.2 percent from the same time a year ago.