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U.S. Small-Business Optimism Falls to 11-Month Low After Oil Surge

Oil’s surge after a U.S. Iran blockade pushed costs higher for small firms.

Overview

  • NFIB, which released March results on Tuesday, said its Small Business Optimism Index fell 3.0 points to 95.8 and its Uncertainty Index rose to 92.
  • Oil briefly topped $100 a barrel after the U.S. military announced a blockade of ships leaving Iran’s ports, lifting crude more than 35% since late February and raising fuel costs for owners.
  • Plans for capital spending dropped to the lowest since 2009 and reported profit trends fell 11 points as more firms passed higher input costs to customers.
  • Hiring intentions stayed near recent lows and nearly one fifth of owners named taxes as their single biggest problem in March.
  • Small Business Administrator Kelly Loeffler called the setback temporary, while related data from the University of Michigan showed consumer sentiment plunged to a record low in April.