Small-business optimism falls for second straight quarter
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Confidence among American small-business owners fell for a second consecutive quarter, according to the U.S. Chamber of Commerce Small Business Index released Tuesday morning.
Why it matters: The numbers signal a "growing unease" over rising inflation and the Iran war, the Chamber said in a news release.
Zoom in: The survey took place from Feb. 25-March 11, and if it had been done before the war started, the results would have been less striking, Neil Bradley, an executive vice president at the U.S. Chamber of Commerce, tells Axios.
Reality check: The index is still higher than this time last year, after President Trump's "Liberation Day" tariffs crushed business confidence.
By the numbers: Researchers surveyed 750 small-business owners and operators who run companies with 500 or fewer people.
- 53% of the small-business owners said inflation was their top challenge, up from 45% in the last three months of 2025.
- Only 37% said they expect to make new investments in the year ahead, down from 44% in Q4.
Stunning stat: Just 28% of small-business owners say the U.S. economy is in good health — down 10 points from the previous quarter.
What to watch: So far the deterioration in sentiment is all wrapped up in how small-business owners are seeing the future. But if the war goes on long enough, those expectations will drag on businesses' current decision-making.
- That's the risk you run, Bradley says.
