Small Businesses Struggle with Inflation, Short Labor

The Small Business Optimism Index (BOI), reported by National Federation of Independent Business, declined 0.8 points in October to a score of 91.3, which is the 10th consecutive month below the 49-year average of 98.  Inflation was the single most important problem for 33% of business owners reporting, and nearly the highest inflation problem rating since 1979.

“Owners continue to show a dismal view about future sales growth and business conditions, but are still looking to hire new workers,” said NFIB Economist Bill Dunkelberg. “Inflation, supply chain disruptions, and labor shortages continue to limit the ability of many small businesses to meet the demand for their products and services.”

NFIB (nfib.com) has collected Small Business Economic Trends data with surveys of membership since 1973 (AOL is a member).  Key survey findings by NFIB include:

*  Of 10 Optimism Index components, two rose, seven fell, and one was unchanged

*  46% of owners expect better business conditions over the next six months, deteriorating two points from     September

*  62% of owners report that supply-chain disruptions significantly or moderately impact their business

*  50% of firms are raising prices, fueling more inflation

*  46% of owners report job openings are hard to fill, and 90% reported few or no qualified applicants

*  13% of owners expect sales to rise