(Nov 10): More than a third of US small-business owners plan to increase prices in the coming months, the most in more than four years, pointing to persistent inflationary headwinds. 

The net share of firms who plan to raise prices in the next three months climbed to 37% in October, according to data from the National Federation of Independent Business (NFIB) released on Tuesday. The small-business optimism index was little changed at 97.8.

The group’s uncertainty index, while still elevated, matched the lowest level of President Donald Trump’s second term. And more firms reported the health of their business as either good or excellent.

“There was little change in optimism among small businesses in October as owners navigated enduring challenges, though there were some encouraging developments,” NFIB chief economist Bill Dunkelberg said in a statement. “Even with inflation pressures continuing to strain operations, more Main Street owners reported their businesses in good or excellent health, and actual sales improved.”

Amid resilient demand, more firms expected to increase compensation. Capital spending plans softened slightly.

While firms continued to note labour quality or availability as the single most important problem, 21% of small-business owners ranked taxes as the top issue. That was the highest since May 2021 and up 10 points from September. About 17% of firms pointed to inflation as heightened input costs continued to burden small businesses.

Uploaded by Felyx Teoh