Small business confidence in the United States took a slight hit in January, according to the National Federation of Independent Business (NFIB) Small Business Optimism Index. The index fell 0.2 points to 99.3, remaining above its 52-year average of 98. While this may seem like a minor setback, it’s important to note that the index has been trending upward in recent months, suggesting that small businesses are still feeling optimistic about their prospects.

Of the 10 Optimism Index components, three increased and seven decreased. The only component with a substantial change was expected real sales volume, which increased by 6 points. This could be a sign that small businesses are feeling more confident in their ability to generate revenue, despite ongoing economic uncertainty.

On the other hand, the Uncertainty Index rose 7 points from December to 91. A rise in owners reporting uncertainty about whether it is a good time to expand their business was the primary driver of this increase. This suggests that while small businesses may be feeling more optimistic about their current situation, they are still cautious about making major decisions or investments.

According to NFIB Chief Economist Bill Dunkelberg, “While GDP is rising, small businesses are still waiting for noticeable economic growth.” Despite this, more owners are reporting better business health and anticipating higher sales, which could be a sign that small businesses are starting to feel the positive effects of recent economic trends.

Overall, while the slight decline in small business confidence may seem concerning, it’s important to keep things in perspective. The index is still trending upward, and small businesses are feeling more optimistic about their prospects than they have in recent years. As always, it’s important to monitor economic trends and adjust your business strategy accordingly, but there are certainly reasons to be cautiously optimistic about the future of small business in America.