(The Center Square) – The National Federation of Independent Business’ Small Business Optimism Index decreased by 0.1 point in November to 90.6, representing the 23rd consecutive month of being below the 50-year national average of 98.
Despite this, an additional 1% of business owners expect better business conditions over the next six months, bringing the total to a net negative 42% seasonally adjusted.
“Ohio isn’t exempt from the challenges facing small businesses nationwide,” NFIB Ohio Director Chris Ferruso said. “Inflation continues to drive up the cost of running a small business and undercut people’s purchasing power while the labor shortage makes it hard for businesses to provide the level of service their customers expect.”
A net 22% of business owners reported inflation as their biggest challenge, representing the same percent as October but 10 points lower than this time last year.
“Job openings on Main Street remain elevated as the economy saw a strong third quarter,” NFIB Chief Economist Bill Dunkelberg said. “However, even with the growing economy, small business owners have not seen a strong wave of workers to fill their open positions. Inflation also continues to be an issue among small businesses.”
According to NFIB’s monthly jobs report, open positions were higher than usual, even when seasonally adjusted for the holidays. A net 18% of business owners plan to create new jobs in the next three months, with 54% hiring or trying to hire in November. Out of those who tried to hire this past month, 93% reported few or no qualified applicants.
In response, a net 36% of owners, seasonally adjusted, reported raising their employee compensation, unchanged from October. However, a net 30% plan to raise compensation in the next three months (seasonally adjusted), up 6 points from October and the highest since December 2021. Labor costs were cited by 8% of business owners as their top problem.
Seasonally adjusted, a net negative 17% of all business owners reported higher sales over the past three months, representing the lowest reading since July 2020. Despite this, owners reporting raising their prices decreased by five points to a net 25%.
