Small business expansion sentiment falls as loan costs rise

Just 7% of small business owners surveyed by NFIB said September was a good time to expand, down five percentage points from August. The group reported an optimism index of 97.9, down 0.8 points and slightly below its long-run average of 98.0.

Borrowing costs rose. Owners reported paying an average 8.2% on short-maturity loans, up 0.7 percentage points from August. Weaker expectations for business conditions and expansion contributed most to the optimism decline.

Hiring plans held steady: a seasonally adjusted net 17% planned to create jobs over the next three months. The September survey drew 411 usable responses from NFIB members.