The small business confidence index in the United States has declined, and sales outlook is weakening.

U.S. small business owner confidence fell for the second consecutive month in February, as their optimism about sales and economic prospects declined. Data released by the National Federation of Independent Business on Tuesday showed that the small business optimism index fell by 0.5 points to 98.8. The survey was conducted throughout February and reflected business sentiment before the Iran conflict pushed up energy prices. Among the 10 subcomponents that make up the index, 4 declined, 3 rose, and 3 remained unchanged. The net percentage of business owners expecting sales to improve after adjusting for inflation decreased by 8 percentage points to 8%, down from a one-year high in January. Meanwhile, the net percentage of business owners reporting improved profit trends increased by 7 percentage points, reaching the highest level since December 2021. The net percentage of business owners expecting overall conditions to improve decreased by 3 percentage points to a three-month low; hiring plans continued to slow down. The net percentage of businesses planning to increase employment fell to the lowest level since May, highlighting the fragility of the U.S. job market. The survey also showed that inflation pressures continued to gradually ease before disruptions in Middle Eastern energy supply led to a spike in gas prices. The net percentage of business owners raising average selling prices decreased for the third consecutive month to 24%.