WASHINGTON (Reuters) - U.S. small-business confidence fell in August, reversing the prior month's jump amid growing uncertainty ahead of the Nov. 5 presidential election and expectations of weak sales.
The National Federation of Independent Business (NFIB) said on Tuesday its Small Business Optimism Index dropped 2.5 points to 91.2 last month. The index had surged in July to the highest reading since February 2022.
Small business owners tend to lean Republican and some economists had viewed the jump in sentiment as largely driven by politics and a stock market rally following then-Democratic Party candidate President Joe Biden's poor debate performance against Republican Party candidate Donald Trump.
Economists had anticipated a reversal after Biden dropped out of the White House race and handed the baton to Vice President Kamala Harris. Trump and Harris are locked in a tight contest, and the stock market has been lackluster.
The survey's Uncertainty Index increased 2 points to 92, the highest since October 2020. The share of businesses expecting higher inflation-adjusted sales volumes in the next three months fell 9 points to -18%.
