A new survey by the National Federation of Independent Business indicates a lack of optimism among small business owners in the fourth quarter. State Director Dawn McVea says nearly 22 percent of small business owners say inflation is their biggest obstacle in operating their business.
“Not only the cost of goods and services but the cost of labor has been affected by it. We got small business owners who continue to report their wages but it’s still…they can’t catch a break.”
A consumer Price Index Report released for October showed annual price inflation rose to three point two percent, which was down slightly from three point seven percent in September.
McVea says the survey also shows small business owners are not growing their inventories as labor and energy costs are not falling.
“Energy costs are still high that’s a factor as well. And folks just aren’t eager to go out to spend a bunch of money and invest right now with the remaining uncertainty just lingering.”
The Optimism Index decreased by one point in October to nearly 91 points, marking the 22nd month below the 50-year average. The last time the Optimism Index was at or above the average was December 2021.
McVea reminds the public that Louisiana charges inventory tax and small business owners purchase additional supplies for the holidays. She urges Louisianans to shop small businesses this holiday season.
“67 cents of every dollar stays in the local economy and get 50 percent back in that economy and reinvest it so we want people to go out support their local business and help them get that inventory out stores and have them start their new year fresh.”
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