US Small Business Sentiment Drops to Lowest in Over a Year—Survey

A hiring sign is seen in front of a Qdoba restaurant, as many restaurant businesses face staffing shortages in Louisville, Ky., on June 7, 2021. Amira Karaoud/Reuters

U.S. small business confidence fell to the lowest in over a year in February in the face of a wave of inflation that is forcing a record percentage of establishments to raise prices and denting their outlook for the economy, a survey showed on Tuesday.

The National Federation of Independent Business said its Small Business Optimism Index dropped 1.4 points to 95.7 last month from 97.1 in January. It was the lowest reading since January 2021.