The National Federation of Independent Business (NFIB) reported that its Small Business Optimism Index in October declined by 0.6 points to 98.2, though it remains above the long-term average of 98. The Uncertainty Index dropped significantly, falling 12 points from September to reach 88, marking the lowest level recorded this year.
While state-specific data for Indiana was not available, NFIB Indiana State Director Natalie Carroll commented on local trends: “Optimism among Indiana’s small businesses dipped in October, mostly due to lower sales and reduced profits. Owners continue to have hiring challenges and reported labor quality as their top business problem.”
According to the report, labor quality continues to be a primary concern for small business owners nationwide. In October, 27% identified it as their most significant issue—an increase of nine percentage points from September and the highest since November 2021. This concern outpaced taxes, which ranked second by an eleven-point margin.
Hiring difficulties persisted; 32% of owners reported job openings they could not fill for the second consecutive month. Of those attempting to hire in October, 88% indicated they had few or no qualified applicants. Plans for new job creation saw a slight decline; a seasonally adjusted net 15% plan to add jobs over the next three months—a decrease of one point from September.
Profitability also decreased among respondents. Reports of positive profit trends fell by nine points from September to a net negative 25%. Weaker sales were cited as the main reason for lower profits by one-third of those reporting declines.
Other findings include a reduction in both actual and planned price increases compared with previous months. The net percentage of owners raising average selling prices dropped three points from September to a net 21%, while looking ahead three months, a net 30% plan price hikes—a one-point decrease.
Inventory levels showed further contraction; the net percent reporting inventory gains fell three points to a net negative six percent (seasonally adjusted). Supply chain disruptions affected 60% of small businesses in October—a four-point improvement over September.
Capital spending remained steady but subdued: fifty-five percent made capital outlays in the past six months (down one point), with most investments directed toward equipment and vehicles.
The survey also noted that only thirteen percent considered it a good time to expand their business—up two points from September but still weak compared with periods of economic expansion.
The NFIB Research Center has been collecting Small Business Economic Trends data through quarterly surveys since late 1973 and monthly surveys since 1986. Survey participants are randomly selected from NFIB’s membership base, and results are published on the second Tuesday each month based on responses collected during October.
