U.S. small businesses show 12th straight month of below-average optimism: NFIB

WASHINGTON, Jan. 10 (Xinhua) -- U.S. small business owners' optimism declined 2.1 points in December to 89.8, marking the 12th consecutive month below the average of 98, according to the National Federation of Independent Businesses' optimism index.

Many small businesses struggle to hire, according to the group, known also as NFIB, which reported the findings in its monthly index released Tuesday.

Overall, 55 percent of owners reported hiring or trying to hire in December, and 93 percent of those hiring or trying to hire reported few or no qualified applicants for the positions they were trying to fill, NFIB found.

Small business owners expecting better business conditions over the next six months worsened by eight points from November to a net negative 51 percent.

Inflation remains the single most important business problem, with 32 percent of owners reporting it as their top problem in operating their business, the index found.

"Overall, small business owners are not optimistic about 2023 sales and business conditions are expected to deteriorate," said NFIB Chief Economist Bill Dunkelberg.

"Owners are managing several economic uncertainties and persistent inflation and they continue to make business and operational changes to compensate," he added.

Twenty-three percent of owners recently reported that supply chain disruptions have had a significant impact on their business. Another 30 percent reported a moderate impact and 32 percent reported a mild impact. Only 13 percent of owners reported no impact from recent supply chain disruptions, NFIB found.