Small business optimism in the US continues to decline, with the NFIB’s Small Business Optimism Index dropping to 91.3 in August, marking 20 consecutive months below the 49-year average of 98. Inflation remains a top concern for 23% of small business owners, with average selling prices also on the rise, indicating ongoing inflationary pressures.

Bill Dunkelberg, NFIB Chief Economist, noted that issues like inflation and the worker shortage are the primary obstacles for small businesses. Expectations for improved business conditions in the next six months saw a significant drop, reaching a net negative of 37%. Job demand remains strong, as 40% of owners face difficulties in filling positions, with 17% planning to create new jobs in the coming quarter.

Despite challenges, businesses are responding by adjusting pricing, with 27% of owners raising selling prices and 30% planning further price hikes. Labor quality and costs, as well as concerns about profit trends, continue to be significant issues. Borrowing dynamics remain stable, with only 2% of business owners reporting unmet borrowing needs, while 27% had all their credit requirements met. For more information click the link!



https://smallbiztrends.com/2023/09/rising-prices-on-main-street-erode-small-business-optimism.html