A measure of optimism among small business owners has retreated on less upbeat expectations.

“Owners continue to show a dismal view about future sales growth and business conditions, but are still looking to hire new workers,” said Bill Dunkelberg, chief economist of the National Federation of Independent Business.

“Inflation, supply chain disruptions and labor shortages continue to limit the ability of many small businesses to meet the demand for their products and services,” Dunkelberg said.

The NFIB reported its Small Business Optimism Index fell eight-tenths of a point to 91.3 between September and October. The index has remained below its 49-year average of 98 for 10 consecutive months.

The NFIB bases the index on the results of monthly surveys of members of the small business advocacy group, most of them small business owners.

For October, seven of 10 components of the index decreased, two increased and one remained unchanged.

The portion of NFIB members responding to the survey upon which the October index was based who expect the economy to improve fell another two points. At a net negative 46 percent, more members anticipate worsening conditions.

A net 23 percent of survey respondents reported plans for capital outlays, down a point from September. A net 5 percent said they consider now a good time to expand, also down a point.

The share of those who expect increased sales fell three points. At a net negative 13 percent, more predicted decreased sales.

Expectations for profits rose a point, but only to a net negative 30 percent. Among those reporting lower profits, 34 percent cited higher materials costs, 22 percent blamed weaker sales and 12 percent pointed to higher labor costs.

A net 2 percent of respondents planned to increase inventories, up two points. A net 0 percent reported current inventories were too low, down a point.

A net 20 percent reported plans to increase employment, down three points. A net 46 percent reported unfilled job openings, unchanged from September.

Asked to identify their single most important problem, 33 percent cited inflation, up three points from September. Another 23 percent the quality of labor and 12 percent taxes.

A net 50 percent of respondents reported raising average selling prices, down a point. Price hikes were most frequent in the retail, wholesale and construction sectors.

A net 44 percent reported raising compensation, down a point. A net 32 percent said they expect to raise compensation in the next three months, up nine points to the highest level in a year.