Small Biz Mood Holds Steady Amid Tax and Labor Worries

The latest NFIB report shows small‑business optimism barely moved in October. The index sits at 97.8, just a tenth of a point below September and almost exactly the long‑run average of 98. Over the past few years the gauge has swung between 105 and 88, so this flat reading feels like a pause.

At the same time the uncertainty measure dropped six points to 84. That is still well above the historic norm of 68, but it is the lowest level since December. Researchers say the shift means owners feel a bit more comfortable making plans.

Taxes, labor shortages and inflation remain the biggest headaches. Twenty‑one percent of owners name taxes as their top problem, the highest share since May 2021. Labor leads at twenty‑five percent and inflation follows at seventeen percent. To cope, many firms are raising prices faster than usual, hoping they can pass higher costs to customers without losing them.

Despite the pressure, nearly seventy percent now rate their business health as good or excellent, up from about sixty percent a month ago. The recent election could bring new tax or rule changes, but many owners hope lawmakers will work together on affordability. The next survey will reveal how the vote really changed sentiment.