Small business optimism hits 11-year low as inflation fears won’t go away [Video]

Small business confidence hit its lowest level in more than 11 years for March as proprietors worried that inflation is still very much a problem.

At a time when other data points show inflation receding, the National Federation of Independent Business reported Tuesday that its survey showed a reading of 88.5, down nearly a point from February and the lowest since December 2012.

A quarter of all respondents reported that rising costs were the biggest problem.

“Small business optimism has reached the lowest level since 2012 as owners continue to manage numerous economic headwinds,” NFIB Chief Economist Bill Dunkelberg said. “Inflation has once again been reported as the top business problem on Main Street and the labor market has only eased slightly.”

A quarter of all respondents cited inflation, and in particular higher input and labor costs, as their most pressing issue. A net 28% reported raising average selling prices for the …