(The Center Square) – Small business optimism in Wisconsin grew in October.
The NFIB is out with the results of its latest Small Business Optimism Index study, and while it shows that small business owners are slightly more optimistic. It also shows that small business owners are not all the way back.
“The NFIB Small Business Optimism Index rose by 2.2 points in October to 93.7. This is the 34th consecutive month below the 50-year average of 98,” The NFIB said in a statement. “The Uncertainty Index rose 7 points to 110, the highest reading recorded. A seasonally adjusted net negative 20% of small business owners reported higher nominal sales in the past three months, the lowest reading since July 2020.”
NFIB’s Wisconsin State Director Bill G. Smith said there are reasons for small business owners to be optimistic.
The new survey says:
● A net 31% reported raising compensation, down one point from September. The last time it was this low was April 2021.
● The percent of owners expecting higher real sales volumes rose five points.
● 5% of owners reported paying a higher rate on their most recent loan, down seven points from September and the lowest reading since January 2022.
● 35% of all owners reported job openings they could not fill in the current period, up one point from September.
There continue to be worries about inflation.
“Twenty-three percent of [small business] owners reported that inflation was their single most important problem,” the survey notes. “[That’s] unchanged from September and remains the top issue.”
“Wisconsin’s small business community is demonstrating its resilience,” Smith said. ““Despite ongoing challenges, it’s heartening to see that 22% of owners are planning capital outlays in the next six months.”
Still Smith said small business owners are not back to their confidence levels, pre-COVID.
“Main Street is still struggling with inflation, unnecessary regulations, and hiring woes,” Smith added. “Lawmakers in Madison must prioritize addressing these issues if they want small businesses to continue to invest in our communities.”
