By Don Nico Forbes
Confidence among U.S. small businesses fell again in March as skyrocketing energy prices, driven by the U.S. and Israel's war in Iran, hit sentiment among both owners and consumers.
The National Federation of Independent Business said Tuesday that its small-business optimism index dropped 3.0 points to 95.8, falling further below its long-term average of 98.
This was below a consensus of economists polled by The Wall Street Journal which expected a reading of 97.8, and marks the steepest fall in sentiment since March 2025.
The NFIB survey provides a monthly snapshot of small businesses in the U.S., which account for nearly half of private-sector jobs.
"The dramatic spike in oil prices has spooked consumers and owners alike," said NFIB Chief Economist Bill Dunkelberg.
"Small business owners are having to absorb those higher input costs and pass them along to their customers," he said.
The fall in optimism was driven by a steep decline in positive profit trends among firms, while expectations for better business conditions also tumbled to the lowest level since October 2024, according to NFIB.
Meanwhile the uncertainty index rose 4 points to 92, well above its historical average of 68.
Write to Don Nico Forbes at don.forbes@wsj.com
(END) Dow Jones Newswires
04-14-26 0614ET
