TRENTON, N.J. — Small business owners’ outlook held nearly flat in October, but the share naming taxes as their biggest problem jumped to its highest level in more than five years, according to a monthly survey released Thursday by the National Federation of Independent Business.
The group’s Small Business Optimism Index came in at 97.8 for October, down 0.1 point from September and just under its 53-year average of 98. NFIB’s Uncertainty Index dropped 6 points to 84, its lowest reading since December 2025, the group said.
Twenty-one percent of owners cited taxes as their single most important problem, up 10 points from September and the highest share since May 2021. That made taxes the No. 2 concern behind the quality or availability of labor, which 25% of owners named as their top issue, down 1 point but still the leading problem for a fourth straight month.
NFIB New Jersey State Director Eileen Kean tied the national findings to the coming legislative session in Trenton.
“With taxes now ranking second as the single most important problem facing small businesses in NFIB’s survey, New Jersey owners are increasingly worried about proposals in the next legislative session that would raise costs and regulatory burdens for small firms,” Kean said. “Lawmakers in Trenton should focus on creating jobs and growing our economy, not making it harder for Main Street businesses to succeed.”
The survey also pointed to rising price pressure. A seasonally adjusted net 33% of owners said they raised average selling prices, up 2 points, and a net 37% said they plan to raise prices, up 6 points and the highest level since July 2022.
Borrowing costs ticked up as well, with a net 13% of owners reporting a higher interest rate on their most recent loan, up 5 points and the highest since August 2024.
Owners’ views of their own businesses improved. Fifteen percent rated their business’s health as excellent and 54% as good, while 26% said fair and 4% said poor. A net 8% expect business conditions to improve over the next six months, up 2 points after two months of decline, and 11% said it is a good time to expand, up 4 points.
Hiring demand remained strong. A seasonally adjusted 36% of owners reported job openings they could not fill, up 4 points and 12 points above the historical average. In its separate monthly jobs report, NFIB said 56% of owners were hiring or trying to hire in October, but 86% of those reported few or no qualified applicants.
Inventory measures softened, with the net share of owners saying stocks were too low falling 3 points to minus 3% and planned inventory investment slipping 3 points to minus 1%.
NFIB, which describes itself as a nonprofit, nonpartisan advocacy group for small and independent businesses, said survey respondents are randomly drawn from its membership. The survey was conducted in October.
This report is based on a press release from the National Federation of Independent Business.
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