Small business owners’ confidence in the US economy rose to a reading of 62.3 in the first quarter from 61.3 in the fourth quarter of 2023, reflecting a stable business climate, according to the US Chamber of Commerce’s Small Business Index released April 2. However, inflation remains a concern for 52% of small businesses.

“Small businesses’ perceptions of the economy are drifting upward, with businesses reporting being comfortable with their cash flow and the health of their business,” Tom Sullivan, VP of small business policy at the US Chamber of Commerce, said in a press statement. “While many business owners have continued to struggle with high prices and rising wages, recent jobs reports are positive. While headwinds remain, confidence is ticking upward, and small businesses are more resilient and prepared for unforeseen challenges.” 

The percentage of small business owners who said the economy is in good health rose by seven percentage points to 32%, and 38% said their local economy is in good health, up eight percentage points from the end of 2023. In addition, 65% of small businesses said their overall health is good, and 67% said they are comfortable with their current cash flow. 

However, the overall perception of the economy remains muted as nearly half of small businesses continue to feel the economy is in poor health. Small businesses remain concerned about inflation, while concern for revenue rose seven percentage points this quarter; 29% said revenue is a top challenge, returning to a level of concern last recorded in late 2021. 

The quarterly survey, a collaboration between MetLife and the US Chamber of Commerce, includes responses from approximately 750 small business owners and decision-makers. The first-quarter survey was conducted between Jan. 26 and Feb. 12.