The September NFIB Small Business Optimism Index reveals a decline in optimism among small-business owners over the past three months. Despite this, they remain more positive than a year ago. Expectations for better business conditions in the next six months dropped by six points from August to a net negative 43%, although it's still 18 points better than June 2022. The index stands at recession levels. Inflation and hiring challenges persist as top concerns, with 23% citing inflation as their primary issue. Businesses report difficulty finding qualified candidates, with 27% having no applicants at all. The index, at 90.8, remains below the 49-year average of 98 for the 21st consecutive month. Small businesses express pessimism about future conditions, attributing it to slowed sales growth and squeezed profit margins. However, positive signs include increased capital spending outlays in the past six months and future plans, with 60% reporting expenditures and 24% planning more.