In December, U.S. small business sentiment experienced its first uptick in five months, with the National Federation of Independent Business (NFIB) index rising to 91.9 from November's 90.6. This increase, the first since July, though positive, still lingers below the 50-year average of 98 for the 24th consecutive month. The backdrop is set against the Federal Reserve's robust rate hike campaign initiated in 2022, impacting credit accessibility for small businesses. Despite the improvement, a net negative 25% of businesses reported enhanced profits, reflecting a 7-point increase in labor costs, a persistent challenge. Inflation remains a paramount concern, with 23% of owners citing it as their main worry, aligning with unexpected consumer price hikes in November, registering a 3.1% increase over 12 months. Small business sentiment in the US is influenced by economic uncertainty, labor quality concerns, and labor costs, with 36% expecting better conditions in the next six months.