Small businesses are growing more pessimistic about the economy, according to a new survey by the National Federation of Independent Business (NFIB).

The Small Business Optimism Index tracked by the NFIB dropped by 2 points last month to 98.8. The September figure is the first drop in optimism in the last three months. NFIB officials note that the optimism index is still above the average of 98, a level that has held for about 52 years across the nation.

Meanwhile, uncertainty among merchants is increasing. That index jumped 7 points from August to September and now sits at 100. That turned out to be the fourth-highest reading in 51 years, according to an NFIB news release.

There were no individual state breakouts available in the NFIB data. But NFIB Florida Executive Director Bill Herrle said Sunshine State small-business owners are pitted against rising obstacles, prompting some of the downturn in outlook.

“Ongoing hiring challenges, rising inflationary pressures, and supply chain disruptions are leaving Florida’s small business owners feeling less optimistic and more uncertain about the economy. Despite these obstacles, they remain dedicated to meeting their customers’ needs,” Herrle said.

The NFIB taps its membership across the U.S. to compile its findings. The individual components that make up the optimism index show small-business owners are growing increasingly anxious about the economy.

Only 23% said in September they expect the economy to improve, an 11-percentage-point drop from August. Some 32% say they have current job openings, which is unchanged from August. Only 11% say it’s a good time to expand, a 3-point drop month to month. And only 8% say they expect real sales to grow higher, a 4-point drop from August.

While the NFIB survey weighs sentiment nationwide, it is reflective of at least the North Florida perspective. The Jacksonville Economic Monitoring Survey report from the University of North Florida has shown heightened anxieties among First Coast manufacturers for the Summer, though there was some improvement in September.

The September report showed that output prices, average input prices, supplier delivery times and business activity outlook all expanded in September.

Other key components such as output, quantity of input purchased, and backlogs of work remained unchanged for the month.

Albert Loh, interim Dean of the UNF Coggin College of Business, oversees the survey. Loh said there are signs of improvement, but the manufacturing scene is still facing hurdles as some industries are skittish.

“While production held steady and prices showed only mild inflationary pressure, the overall decline suggests that local manufacturers are facing soft demand and lingering cost challenges,” Loh said in his summary of the report.

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