A recent nationwide survey of small business owners finds inflation remains the top problem for Main Street, but optimism is at the highest point since December 2023. NFIB’s Todd Pack says their Small Business Optimism Index is up to 91.5 but that’s still below average.
“It’s the 30th month that we’ve been below the historic average of 98,” Pack said.
The survey found 21% of owners reporting inflation as the most important problem for their businesses. Pack says inflation is tricky for small businesses to navigate because though inflation isn’t rising as fast as it did a few months ago, it’s still increasing.
“That, in turn, leads to higher prices for consumers and puts them in a bind because they have to really think twice before they spend a dollar,” he says. “Their money just does not go as far as it did.”
Another issue the survey found was hiring. Pack says many small businesses had serious trouble filling job openings, especially construction, transportation and retail.
“Of the 60% of owners who were trying to hire in June, 85% said they had few or no qualified applicants for the positions they’re hiring for,” he explains.
It’s not all bad, however, as the survey found that seasonally adjusted, a net 38% of small business owners reported raising compensation in June and 22% plan to raise compensation in the next three months.
