Casey Harper (Center Square)
A recent survey found that uncertainty for U.S. small businesses is at an all-time high and optimism remains low just weeks before Election Day.
The National Federation of Independent Business released a survey Monday that found uncertainty among small businesses rose last month to the highest level ever recorded by the NFIB.
“Small business owners are feeling more uncertain than ever,” Bill Dunkelberg, NFIB’s chief economist, said in a statement.
Small and medium-sized businesses have been hit hard by inflation in recent years, with prices rising more than 20% since President Joe Biden took office. Pandemic-era lockdowns and supply chain issues have left many businesses in debt or depleting their savings.
Many large companies had greater reserves or access to capital to help them survive COVID-19 while smaller companies went bankrupt.
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“Twenty-three percent of owners said inflation was the most important problem (high input and labor costs) in running their business, down one point from August but still remaining the biggest problem,” the NFIB said.
Inflation has slowed from the feverish pace at the beginning of Biden’s term, but prices are still rising.
“Among all owners (seasonally adjusted), a net negative 17% reported higher nominal sales over the past three months, down one point from August and the lowest this year,” the NFIB said. “The net percentage of owners expecting actual sales to be higher increased 9 points to a net negative 9% (seasonally adjusted).”
Small and medium-sized business owners are also complaining about difficulties in the labor market.
“Uncertainty makes owners hesitant to invest in capital expenditures and inventory,” Dunkelberg said. “Particularly as inflation and financing costs continue to put pressure on earnings,” Dunkelberg added. “There is some hope for the holiday sales season, but many Main Street owners are questioning whether business conditions will improve in the future.”
Syndicated with permission from The Center Square.
