Fifteen percent of small business owners cited labor quality as their single most important problem, down 1 point from January and the fourth consecutive monthly decline. The last time labor quality, reported as the top issue, was this low was in April 2020.

A net 1% of all owners (seasonally adjusted) reported higher nominal sales in the past three months, up 7 points from January. The percent reporting actual sales gains are now close to the historical average of a net 0%. The last time actual sales were this high was in May 2022.

The net percent of owners expecting higher real sales volumes fell 8 points from January to a net 8% (seasonally adjusted). This more than erased the strong, 6-point gain observed in January.

In February, 59% of small business owners reported that supply chain disruptions affected their business to some extent, a decrease of 3 points from January.

The net percent of owners raising average selling prices fell 2 points from January to a net 24% (seasonally adjusted). This marked the third consecutive month that actual price increases slowed, though the changes remain well above the historical average.

Seasonally adjusted, a net 34% reported raising compensation, up 2 points from January and the highest level since March 2025.

The frequency of reports of positive profit trends rose 7 points from January to a net negative 14% (seasonally adjusted). The last time earnings trends were this high was in December 2021.

When asked to evaluate the overall health of their business, 12% rated it as excellent (down 2 points), 55% as good (up 1 point), 26% as fair (down 1 point), and 5% as poor (up 1 point).

Eight percent reported competition from large businesses as their single most important problem, up 2 points from January. The last time competition from large businesses, reported as the top issue, was this high was in May 2021.