- ORIGINAL NEWS
Small business optimism hits 11-year low as inflation fears won’t go away
- SUMMARY
Small businesses in the United States are feeling pessimistic about the economy, with inflation being their biggest concern.
The National Federation of Independent Business (NFIB) recently conducted a survey of small businesses and found that their optimism index has reached its lowest level in over 11 years.
The survey showed that a quarter of respondents cited inflation, in particular higher input and labor costs, as their most pressing issue.
This is concerning because inflation is currently at a 40-year high in the United States, and it shows no signs of slowing down.
Another concern for small businesses is the labor market.
The survey found that only a slight improvement has been made in the labor market, with a net 28% of respondents reporting that they raised average selling prices for the month and 33% planning additional price hikes.
Furthermore, a net 38% said they raised compensation, up from the February reading which was the lowest since May 2021.
While other data points show that inflation may be receding, the NFIB survey suggests that small businesses are still feeling the pinch.
Inflation has been consistently eroding their profit margins, and they are having to raise prices in order to keep up with their rising costs.
This is a difficult situation for small businesses, as it can lead to decreased sales and even bankruptcy.
The survey also found that small businesses are not optimistic about the future.
They are worried that inflation will continue to be a problem, and they are not confident that the economy will improve in the coming months.
This pessimism is a reflection of the broader economic uncertainty that is currently facing the United States.
Overall, the NFIB survey paints a bleak picture of the current state of small businesses in the United States.
Inflation is taking a toll on their profits, and they are not optimistic about the future.
The survey highlights the challenges that small businesses are facing in the current economic environment.
- NEWS SENTIMENT CHECK
- Overall sentiment:
negative
Positive
Negative
“Small business confidence hit its lowest level in more than 11 years for March as proprietors worried that inflation is still very much a problem.”
“A quarter of all respondents cited inflation, and in particular higher input and labor costs, as their most pressing issue.”
“At a time when other data points show inflation receding, the National Federation of Independent Business reported Tuesday that its survey showed a reading of 88.5, down nearly a point from February and the lowest since December 2012.”
“A quarter of all respondents reported that rising costs were the biggest problem.”
“Small business optimism has reached the lowest level since 2012 as owners continue to manage numerous economic headwinds”
“NFIB Chief Economist Bill Dunkelberg said. Inflation has once again been reported as the top business problem on Main Street and the labor market has only eased slightly.”