Small business earnings are sharply contracting—a clear warning sign of an impending recession.

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Small business earnings are sharply contracting, a clear warning sign of an impending economic downturn. The NFIB Small Business Optimism Index has remained below its 50-year average of 98 for 34 consecutive months as of October 2024, reflecting deep pessimism among business owners.

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Sales have taken a significant hit, with 20% of small business owners reporting declining sales, the worst performance since July 2020. Along with this, economic challenges such as inflation, low sales, and unfilled job openings continue to plague small businesses.

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In addition, the NFIB Uncertainty Index reached a record high in October, reflecting heightened concerns due to the upcoming election, further complicating the financial outlook for small business owners.

Sources
https://www.floordaily.net/flooring-news/nfib-small-business-optimism-index-rose-22-points-in-october

https://www.baltimoresun.com/2024/11/17/small-business-owners-more-optimistic/

https://www.msn.com/en-us/money/smallbusiness/small-business-owners-in-october-were-more-optimistic-despite-record-uncertainty