US small-business optimism experienced its biggest drop in over a year last month, with the National Federation of Independent Business reporting a 2 point drop to 89.9, the sharpest monthly drop since December 2022. The share of owners expecting higher real sales volumes also fell 12 percentage points. Small-business owners have reported lower earnings in the last three months due to ongoing economic challenges. NFIB's chief economist, Bill Dunkelberg, explains that owners are making adjustments to stimulate longer-term investment spending. However, their views on the future are not supportive, and financing costs are high. Owners are planning to boost employment, but the number has dropped to the lowest level since May 2020. The majority of owners are unable to fill job openings due to a lack of qualified candidates. Despite inflation cooling, 15% of owners reported reducing selling prices, the largest share since August 2020.