Small Business Optimism Reverses Course in January

Small business optimism dipped in January as hiring and investment plans softened, despite a sharp rebound in sales expectations. The report suggests the labor market is in a state of malaise, although inflation is no longer accelerating.

Key Takeaways

• 1.Small business optimism declined in January after two months of improvement, driven by softening hiring and capital expenditure plans.
• 2.Future sales expectations provide a rare positive signal, rebounding to their highest level since early 2025.
• 3.The labor market shows signs of 'malaise' as small business hiring plans downshift and hard-to-fill openings reach cycle lows.

Table of Contents

• Summary
• Small Businesses Downshift Hiring Plans
• Capex
• Inflation
• Sales
• Outlook
• Subscription Information
• Economics Group
• Required Disclosures

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