Survey shows over 60% of U.S. small businesses pessimistic about U.S. economy

A majority of small businesses in the United States are pessimistic about the U.S. economy and concerned about tariff policies having a possible negative impact on their business, a U.S. survey showed on Friday.

According to the survey released by CNBC, about 66 percent of small business owners believe they either have been or expect to be impacted by tariffs, and 51 percent said they expect changes in trade policy to have a negative effect on their business over the next 12 months.

The survey said as the new U.S. administration takes office, the feeling of economic optimism quickly dwindled amid growing uncertainty around the impact of tariffs and a potential recession.

Only 30 percent of respondents believe that they would rate the current state of the economy as excellent or good, while 70 percent saying it's fair or poor, according to the survey, adding that 70 percent of small business owners said they believe the country is headed towards a recession.

Furthermore, uncertainty over trade policy has put increased financial pressure on small business owners, both for their businesses and for them personally, said the survey.

Over 60 percent of respondents said they are "very" or "somewhat" stressed about the financial situation of their businesses and their own finances, it said. Inflation and consumer demand remain the top risks listed by small business owners.