WASHINGTON— Confidence among U.S. small-business owners declined for a second straight quarter as concerns over inflation and geopolitical tensions weigh on outlooks, according to new data from the U.S. Chamber of Commerce.
The Chamber’s Small Business Index points to what it described as “growing unease” tied to rising prices and the war involving Iran, Axios reported.
The survey, conducted between Feb. 25 and March 11, captured sentiment before the conflict fully escalated, suggesting conditions may have worsened further, Neil Bradley, executive vice president of the Chamber, told Axios.
Despite the recent decline, Axios noted the index remains above year-ago levels, when business sentiment was hit by tariffs imposed during what was referred to as “Liberation Day.”
The Numbers
The new Chamber survey numbers show:
- Inflation concerns rising: 53% of small-business owners identified inflation as their top challenge, up from 45% in the fourth quarter of 2025.
- Investment expectations weakening: 37% said they expect to make new investments in the year ahead, down from 44% in the prior quarter.
- Economic outlook deteriorating: Just 28% of respondents said the U.S. economy is in good health, a drop of 10 percentage points from the previous quarter.
Axios reported the survey included 750 small-business owners and operators of firms with 500 or fewer employees.
The decline in confidence is largely driven by expectations about future conditions rather than current business performance, according to Axios. However, prolonged geopolitical tensions could begin to influence day-to-day business decisions if uncertainty persists, the report added.
