Small business owners concerned about inflation and labor quality

(The Center Square) – The National Federation of Independent Business released their Small Business Optimism Index Monday, which remained below the 49-year average for the 17th month in a row.

Inflation and labor quality made up about half of small business owners’ biggest concern, with 25% naming inflation as their biggest problem and 24% saying the same about labor quality.

Up to 44% of small business owners reported that “job openings were hard to fill, down one point from April and remaining historically very high.” The net percentage of owners raising their average prices decreased one point this month to a net 32%, showing a downward but still significant inflationary trend.

The NFIB Chief Economist Bill Dunkelberg said that “supply chain disruptions and labor shortages will continue to limit the ability of many small firms to meet the demand for their products and services, while less severe than last year’s experience.”

The number of small business owners expecting better conditions over the next six months declined by one point from April to May, showing overall optimism for the future economy as 50% lower than the average.

- Advertisement -

A net negative 8% of all owners reported higher nominal sales in the past three months, with the net percent of owners expecting higher real sales lowering to a net negative 21%.

The Small Business Optimism Index increased by 0.4 points in May, giving it an index of 89.4, almost nine points lower than the average of 98. Optimism has improved slightly overall since April, but small business owners are still concerned about future conditions.

The NFIB index serves as an indicator of the small business economy by collecting data on sales and the concerns and problems of owners.

Hot this week

African and Caribbean Nations Call for Reparations for Slave Trade, Propose Global Fund

Nations across Africa and the Caribbean, deeply impacted by...

Sports betting expert offers advice on paying taxes for gambling winnings

(The Center Square) – Tax season is underway, and...

Health care company agrees to pay $22.5 million to settle claims of over billing

A health care company agreed to pay nearly $22.5...

Entertainment district benefits don’t outweigh the cost, economists say

(The Center Square) — Weeks later, after more details...

Business association ‘disappointed’ by WA L&I’s proposed workers comp rate hike

(The Center Square) – The Association of Washington Business...

Controversial initiative bill gets mixed testimony

(The Center Square) – A Washington state bill that...

WATCH: Budget hawks react to Shapiro’s spending plan

(The Center Square) – Gov. Josh Shapiro's $51.4 billion...

Ohio’s specialized wildfire unit in California

(The Center Square) – Ohio firefighters are in California...

Louisiana sees significant gains in national education rankings

(The Center Square) − Louisiana has achieved its highest...

Advocate warns ‘lack of community care’ around Obama library in Chicago

(The Center Square) – A Black-owned concrete subcontractor tasked...

Phoenix school district’s financial woes trigger federal funding, state investigation

(The Center Square) – A Phoenix-area school district’s fate...

Idaho House passes school choice bill

(The Center Square) – The Idaho House on Friday...

U.S. business group calls for end to tariff threats

(The Center Square) – After days of high drama...

More like this
Related

Controversial initiative bill gets mixed testimony

(The Center Square) – A Washington state bill that...

WATCH: Budget hawks react to Shapiro’s spending plan

(The Center Square) – Gov. Josh Shapiro's $51.4 billion...

Ohio’s specialized wildfire unit in California

(The Center Square) – Ohio firefighters are in California...

Louisiana sees significant gains in national education rankings

(The Center Square) − Louisiana has achieved its highest...