COLUMBUS, Ohio – The NFIB Small Business Optimism Index declined 0.6 points in October to 98.2 but remained above its 52-year average of 98. The Uncertainty Index fell 12 points from September to 88, the lowest reading this year.

“While optimism among the nation’s small businesses dipped in October, it’s a positive sign that owners are feeling less uncertain about the future of their businesses,” said Jared Weiser, NFIB Ohio state director. “Labor quality remains the top challenge for small employers, and we’re grateful the Ohio Legislature continues to prioritize easing this burden for Main Street.”

In October, 27% of small business owners cited labor quality as their single most important problem, up 9 points from September and the highest level since the record high of 29% in November 2021. Labor quality ranked as the top problem and was 11 points higher than taxes, which ranked second.

As reported in NFIB’s monthly jobs report, a seasonally adjusted 32% of all small business owners reported job openings they could not fill in October, unchanged for the second consecutive month. Before August, the last time unfilled job openings hit 32% was in December 2020. Of the 56% of owners hiring or trying to hire in October, 88% reported few or no qualified applicants for the positions they were trying to fill. A seasonally adjusted net 15% of owners plan to create new jobs in the next three months, down 1 point from September. This marks the first decline since hiring plans started to increase in May 2025.

Labor costs reported as the single most important problem for business owners fell by 3 points from September to 8%. Seasonally adjusted, a net 26% reported raising compensation, down 5 points from September. A seasonally adjusted net 19% plan to raise compensation in the next three months, unchanged from September.

Fifty-five percent of small business owners reported capital outlays in the past six months, down 1 point from September. Of those making expenditures, 36% reported spending on new equipment, 22% acquired vehicles and 14% improved or expanded facilities. Thirteen percent spent money on new fixtures and furniture, and 3% acquired new buildings or land for expansion. Twenty-three percent (seasonally adjusted) plan capital outlays in the next six months, up 2 points from September.

A net negative 13% of all owners (seasonally adjusted) reported higher nominal sales in the past three months, down 6 points from September. The net percent of owners expecting higher real sales volumes fell 2 points from September to a net 6% (seasonally adjusted).

The net percent of owners reporting inventory gains fell 3 points to a net negative 6%, seasonally adjusted. Not seasonally adjusted, 10% reported increases in stocks, and 15% reported reductions. A net negative 4% (seasonally adjusted) of owners viewed current inventory stocks as “too low” in October, up 3 points from September’s largest monthly decline in the survey’s history. A net negative 2% (seasonally adjusted) of owners plan inventory investment in the coming months, down 3 points from September.

Other findings:

  • The frequency of reports of positive profit trends fell 9 points from September to a net negative 25% (seasonally adjusted). This component contributed the greatest to the decline in the Optimism Index.
  • In October, both actual and planned price increases fell from the previous month. The net percent of owners raising average selling prices fell 3 points from September to a net 21% (seasonally adjusted). Looking forward to the next three months, a net 30% (seasonally adjusted) plan to increase prices (down 1 point from September).
  • In October, 60% of small business owners reported that supply chain disruptions were affecting their business to some degree, down 4 points from September.
  • The net percent of owners expecting better business conditions fell 3 points from September to a net 20% (seasonally adjusted), the lowest level since April but remaining above the historical average of net 4%.