Small Business Operators Pessimistic About The Future

For the third month in a row, the NFIB’s Small Business Optimism Index has decreased. It dropped by 2.4 points in March to 93.2. That marks the third consecutive month below the 48-year average of 98. Inflation is worrying small business operators the most (31%), up five points from February and the highest reading since the first quarter of 1981. Inflation has now replaced labor quality as the number one problem for small business operators.

“Inflation has impacted small businesses throughout the country and is now their most important business problem,” said NFIB Chief Economist Bill Dunkelberg. “With inflation, an ongoing staffing shortage, and supply chain disruptions, small business owners remain pessimistic about their future business conditions.”

Key findings included from the report:

• Owners expecting better business conditions over the next six months decreased 14 points to a net negative 49%, the lowest level recorded in the 48-year-old survey.
• Forty-seven percent of owners reported job openings that could not be filled, a decrease of one point from February.
• The net percent of owners raising average selling prices increased four points to a net 72% (seasonally adjusted), the highest reading in the survey’s history.