(The Center Square) – Small business optimism is falling, and uncertainty is rising, a new survey from the National Federation of Independent Business shows.
NFIB’s Small Business Optimism Index fell by 2.1 points in February, 4 points below its most recent peak in December. At the same time, the Uncertainty Index rose by 4 points, the second-highest reading ever recorded.
Both indicators have reversed since creeping higher over the past few months.
Although state-specific data is unavailable, NFIB Ohio State Director Chris Ferruso said small business owners around Ohio are concerned.
While optimism among small business owners has improved the past few months, small business owners are concerned about the economy and are feeling uncertain,” Ferruso said. “Lawmakers in Columbus should continue to focus on bolstering our workforce and avoid policies that are going to make it harder for small employers to hire and grow.”
The NFIB’s latest jobs report showed 38% of small business owners have job openings they can’t fill, the highest mark since August. At the same time, 53% of owners say they were hiring or tried to hire in February.
The group applauded Ohio Gov. Mike DeWine’s recent State of the State Address that focused on jobs and workforce development.
“The continuing worker shortage is a top problem for Ohio’s small businesses, so we are thankful that Gov. DeWine has made strengthening our workforce a priority of his administration and is tasking Lieutenant Governor Tressel to focus on identifying the job, skillset, education, and talent needs in each region of Ohio to assist Main Street,” Ferruso said.
The optimism index also showed only 37% of small business owners nationally expect the economy to improve, a dop of 10 points from January.
At the same time, only 12% believe it’s a good time to expand their business, a 5-point drop from January. And 32% say they plan to raise prices, 10 points higher than January and the largest jump since April 2021.
“Uncertainty is high and rising on Main Street and for many reasons,” Bill Dunkelberg, NFIB chief economist, said. “Those small business owners expecting better business conditions in the next six months dropped and the percent viewing the current period as a good time to expand fell but remains well above where it was in the fall. Inflation remains a major problem, ranked second behind the top problem, labor quality.”
