| Inflation has been acting like a horrific song of the summer that trails you around incessantly—and now, small businesses are showing the strain.25% of small business owners said inflation was the “single most important problem” in running their business, according to a new survey from the National Federation of Independent Business (NFIB).Notably, inflation surpassed labor quality as the top concern for small businesses in the month of May, per the survey. Labor quality came in a close second, though; 24% of small business owners cited it as a top concern.Small business owners are in a half-empty kind of mood in general. While the NFIB’s “Small Business Optimism Index” rose 0.4 points to 89.4, it still marked the 17th month in a row that it fell “below the 49-year average of 98.” The Optimism Index hasn’t hit or exceeded the average since December 2021.And, like any diligent pessimist, small business owners don’t feel all that much better when they look ahead to the future, either. The share of small business owners who expected better business conditions in the next six months dropped a point from April to in May “to a net negative 50%” according to the NFIB.“Overall, small business owners are expressing concerns for future business conditions,” Bill Dunkelberg, NFIB’s chief economist, said in a statement. “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.”Keep reading.—NP |
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