Inflation remains a significant issue for small business owners throughout the U.S., including Mississippi. Leaders like Leah Long, NFIB State Director, emphasize that even though price hikes have slowed a bit, they continue to hurt businesses and their customers.
These rising costs have been a constant struggle since the middle of 2021.
Key Findings from NFIB’s Recent Report:
- Inflation Impact: About 21% of small business owners said inflation is their biggest challenge, just a bit down from the previous month.
- Compensation Plans: A seasonally adjusted net 22% of owners intend to increase employee pay in the next three months.
- Inventory Levels: A net negative 2% feel their current inventory is “too low,” indicating slight improvement.
- Future Inventory Investment: Another net negative 2% of owners plan to invest in inventory soon, up from earlier months.
- Capital Outlays: Over half of the business owners (52%) made capital investments in the last six months, though this number is lower compared to prior surveys.
- Borrowing Needs: Around 4% of owners noted that their borrowing needs haven’t been met, the highest percentage in almost two years.
NFIB Small Business Optimism Index:
In June, the NFIB Small Business Optimism Index reached 91.5 points, showing the highest optimism this year. However, this number is still below the historical 50-year average of 98.
Only 8% of owners feel that business conditions will improve by the end of the year, reflecting ongoing concerns about the economic environment.
Survey Data Collection:
The NFIB has been gathering valuable data from small business owners across the states since 1973. Monthly surveys began in 1986. This long-standing trend data helps to paint an accurate picture of the challenges and outlook small businesses face today.
By keeping up with these regular updates and surveys, small business owners and policymakers can better navigate the ever-changing economic landscape.
