Small-business owners’ confidence dropped to 62.3 from 69.1 during the first quarter in all business categories, according to the MetLife and U.S. Chamber of Commerce Small Business Index.
The quarterly index gages where small-business owners are confident and where they are experiencing challenges. A survey was conducted 750 small-business owners and operators from Jan. 28 to Feb. 14.
“The data is clear, confidence is being shaken as small businesses increasingly worry about their revenue while at the same time confronting the possibility that tariffs will raise costs for them and their employees,” Tom Sullivan, at the U.S. Chamber of Commerce, vice president of small business policy, said. “But while measures related to revenue and cash flow dipped, other underlying indicators such as hiring plans, investment plans, and overall confidence in the economy remain strong. The prospect of tax and regulatory relief may be buoying optimism amid uncertainty.”
Key findings:
- The number of owners concerned about inflation reached a record 58 percent.
- Concern for revenue grew 10 percentage points to 35 percent.
- Businesses comfortable with their cash flow dropped to 66 percent.
- Confidence in business health dropped to 63 percent.
- Twenty percent of small businesses increased staff in the past year.