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Small business sentiment hovers near historic low as inflation rages
Report: Nearly 50% of small businesses in a hiring freeze
The Chateau on The Lake owner Buddy Foy Jr. discusses how small business and restaurants are struggling to hire employees in an inflationary climate on ‘Fox Business Tonight.’
Small business confidence rose slightly in July but remained near a historic low as fears over white-hot inflation persisted, with the most business owners since 1979 reporting that rising prices were their single most important problem, according to a new survey published on Tuesday.
The National Federation of Independent Businesses, a Tennessee-based association of small business owners, said its Small Business Optimism Index climbed to 89.9 last month, a 0.4 percentage point increase from June. That marks the seventh straight month of readings below the 48-year average of 98.
The outlook is dark for many small businesses but starting to improve, with the percentage of owners expecting better business conditions over the next month, climbing nine points from June's record low. Expectations for better business conditions have deteriorated consecutively from January to June.
According to the survey, the biggest problem is inflation: despite the improvement in business condition expectations, 37% of small business owners reported that rising prices are their single most important problem in operating their business, the highest reading since 1979.
DEMOCRATS' MINIMUM CORPORATE TAX WOULD HIT THESE INDUSTRIES THE HARDEST
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