U.S. small business sentiment rose for the first time in five months in December, reaching a level of 91.9, according to a survey by the National Federation of Independent Business (NFIB). However, concerns about inflation and rising hiring costs continue to impact business owners’ confidence. The report highlighted that a net negative 25% of businesses reported improved profits in December, with labor costs weighing on earnings. The NFIB said that inflation was identified as the top problem for owners, with 23% reporting it as their main concern. The survey also revealed that uncertainty around future economic conditions has eroded the business outlook. Despite the increase in sentiment, small business confidence remains below its 50-year average of 98 for the 24th consecutive month.
