More Than a Third Of Small Businesses Plan Price Hikes, NFIB Says

What the survey found

The National Federation of Independent Business said Tuesday that a net 37% of firms expect to lift prices over the next three months, marking the highest share in more than four years. The small-business optimism index was nearly flat at 97.8.

NFIB's uncertainty index, though still high, equaled the lowest reading of President Donald Trump's second term. More owners also described their business health as good or excellent.

Health, hiring and spending

Bill Dunkelberg, NFIB's chief economist, put it this way: "There was little change in optimism among small businesses in October as owners navigated enduring challenges, though there were some encouraging developments." He added, "Even with inflation pressures continuing to strain operations, more Main Street owners reported their businesses in good or excellent health, and actual sales improved."

With demand holding up, a larger share of firms anticipated boosting compensation, while capital spending plans edged down. Labor quality or availability remained the top single problem for many owners.

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Why it matters for your portfolio

Price plans are picking up, wage expectations are firming, and taxes just jumped to the top concern for 21% of owners, reaching the highest level since May 2021 and rising by 10 points from September. Meanwhile, about 17% pointed to inflation as input costs stayed sticky.

The bottom line: small-business costs and confidence feed into local prices and the earnings of suppliers and lenders that show up in your portfolio.

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