The NFIB's new report shows the largest drop in optimism since October 2011.
Small business optimism sunk lower than expected in June, the National Federation of Independent Businesses announced today.
The NFIB's Small Business Optimism Index dropped 3 points since May, marking the biggest drop since October 2011. The news comes as somewhat of a surprise, as economists predicted a less dramatic fall earlier this month, according to The Wall Street Journal.
"All in all, this month's survey was a real economic downer," NFIB Chief Economist William Dunkelberg said in a statement to the press.
What's weighing on the minds of America's small business owners?
According to the report, nearly 23% of owners say weak sales is the biggest problem, while 21% say taxes and 19% cite unreasonable regulations and red tape.
This news comes hot on the heels of a similarly dreary announcement by the Institute for Supply Management, which said that America's manufacturing sector shrank in June for the first time in three years.