Important points
- Optimism among small business owners fell to a four-month low in September due to soaring prices and job shortages, according to the NFIB.
- NFIB survey respondents said inflation and the inability to hire quality workers were the most important management issues.
- Small and medium-sized business owners are increasingly pessimistic about their business conditions over the next six months.
A survey by the National Federation of Independent Business (NFIB) found that optimism among small business owners has fallen to a four-month low as persistently high prices and labor shortages weigh on businesses.
NFIB's Small Business Optimism Index fell 0.5 points last month to 90.8, the 21st consecutive month below the 49-year average.
23% of those surveyed cited inflation as the most important issue, and a similar percentage cited retaining quality employees as the top concern for owners. A majority (43%) say they have job openings that are difficult to fill, an increase of 3 points since August.
The number of respondents expecting business conditions to improve over the next six months fell by 6 percentage points, to a seasonally adjusted net negative 43%.
Bill Dunkelberg, chief economist at the NFIB, said sales growth has slowed, weighing on profits and forcing companies to raise prices. The NFIB noted that 29% of participants reported increasing prices in the last month, which the group called “highly inflationary levels.”
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