FX.co ★ US Small Business Sentiment Deteriorates Further

The US NFIB Small Business Optimism Index declined to 97.9 in September 2026, a three-month low, down from 98.7 in August and broadly in line with market expectations of 98. Among the 10 index components, three increased, six decreased, and one was unchanged. The largest drags on the headline index came from deteriorating expectations for future business conditions and a drop in the share of owners saying it is a good time to expand.

Concerns over labor quality and availability intensified: the share of owners citing this as their single most important problem rose by 3 percentage points to 26%, making it the top issue for the third straight month. Inflation ranked second, with 20% of owners naming it as their primary concern, up 4 points from August. “Small business owners are proceeding with caution as they interpret how rising costs, interest rates, and the difficulty in finding qualified employees are impacting their business,” said NFIB Chief Economist Bill Dunkelberg.