(The Center Square) – Small businesses are uncertain about the future, according to the National Federation of Independent Businesses Small Business Optimism Index for September, a trend that is also felt in Georgia.
The index dropped two points to 98.8, the organization said in a release. It’s the decline in three months.
Georgia business owners are feeling the same, according to Hunter Loggins, Georgia director for the National Federation of Independent Businesses.
“When you talk to Georgia small business owners, you hear the same story,” Loggins said. “They’re working hard and remain hopeful, but they’re worried about what’s coming next. That uncertainty is giving many of them second thoughts when it comes to expanding, and that affects the whole community.”
Twenty-four percent of businesses that took part in the national survey said they planned to raise prices, an increase of 3%.
The national survey showed business owners were most concerned about supply chain disruptions, with 64% saying it is affecting their businesses, a three-point increase from August.
Another concern is inflation, as 14% of business owners surveyed said it was their most important problem.
“While most owners evaluate their own business as currently healthy, they are having to manage rising inflationary pressures, slower sales expectations, and ongoing labor market challenges,” said Bill Dunkelberg, the chief economist for the national arm. “Although uncertainty is high, small business owners remain resilient as they seek to better understand how policy changes will impact their operations.”
Concerns continue over labor, with 18% of those surveyed saying it was their most important problem.
The Georgia labor force has declined over the year. The number of Georgia workers also increased in August by 4,489 to 5,381,610, but was not enough to overcome a year-to-date decline in the labor force of 34,227, according to the Georgia Department of Labor.
The Peach State’s unemployment rate is lower than the national average at 3.4% for August.
