Small businesses have a bleak outlook for better business conditions for the near-future. National Federation of Independent Business state director Dawn McVea says their monthly Optimism Index survey of members has dropped nearly 4 points.
“It’s the sixth consecutive month that it’s dropped since the year started, and it’s only gotten worse,” she says.
McVea says as inflation continues to dominate business decisions, small business owners’ expectations for better business conditions have reached a new low and fewer member businesses believe sales will increase in the near-term. Over half say they cannot fill open jobs. An increasing number feel they cannot raise their prices fast enough to keep up with runaway inflation. She says members point their collective finger at the White House.
“Since the Biden administration came in it seems that we can’t escape this inflation and these gas prices…and it’s just really killing small business.”
McVea says members say supply chain issues, inflated costs and high fuel prices are combining to make their outlook for future months poor. She says many do not dare to raise their prices further to compensate.
“What that tells you is that small businesses have figured out they have hit their maximum of what they can charge, and now they’ve go to live with that.”
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